UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT

OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-02368

Name of Registrant:	Vanguard Fixed Income Securities 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:  January 31

Date of reporting period: February 1, 2019—July 31, 2019

Item 1: Reports to Shareholders

Semiannual Report  |  July 31, 2019

Vanguard U.S. Government Bond Funds

Vanguard Short-Term Treasury Fund

Vanguard Short-Term Federal Fund

Vanguard Intermediate-Term Treasury Fund

Vanguard GNMA Fund

Vanguard Long-Term Treasury Fund

See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.

Important information about access to shareholder reports

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.

If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.

You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.

Contents
About Your Fund’s Expenses	1
Short-Term Treasury Fund	4
Short-Term Federal Fund	19
Intermediate-Term Treasury Fund	37
GNMA Fund	53
Long-Term Treasury Fund	72
Trustees Approve Advisory Arrangements	86

About Your Fund’s Expenses

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

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

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

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

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

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

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

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

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

1

Six Months Ended July 31, 2019

	Beginning	Ending	Expenses
	Account Value	Account Value	Paid During
	1/31/2019	7/31/2019	Period
Based on Actual Fund Return
Short-Term Treasury Fund
Investor Shares	$1,000.00	$1,022.00	$1.00
Admiral™ Shares	1,000.00	1,022.51	0.50
Short-Term Federal Fund
Investor Shares	$1,000.00	$1,024.39	$1.00
Admiral Shares	1,000.00	1,024.90	0.50
Intermediate-Term Treasury Fund
Investor Shares	$1,000.00	$1,044.31	$1.01
Admiral Shares	1,000.00	1,044.82	0.51
GNMA Fund
Investor Shares	$1,000.00	$1,033.73	$1.06
Admiral Shares	1,000.00	1,034.24	0.55
Long-Term Treasury Fund
Investor Shares	$1,000.00	$1,102.69	$1.04
Admiral Shares	1,000.00	1,103.23	0.52

2

Six Months Ended July 31, 2019

	Beginning	Ending	Expenses
	Account Value	Account Value	Paid During
	1/31/2019	7/31/2019	Period
Based on Hypothetical 5% Yearly Return
Short-Term Treasury Fund
Investor Shares	$1,000.00	$1,023.80	$1.00
Admiral Shares	1,000.00	1,024.30	0.50
Short-Term Federal Fund
Investor Shares	$1,000.00	$1,023.80	$1.00
Admiral Shares	1,000.00	1,024.30	0.50
Intermediate-Term Treasury Fund
Investor Shares	$1,000.00	$1,023.80	$1.00
Admiral Shares	1,000.00	1,024.30	0.50
GNMA Fund
Investor Shares	$1,000.00	$1,023.75	$1.05
Admiral Shares	1,000.00	1,024.25	0.55
Long-Term Treasury Fund
Investor Shares	$1,000.00	$1,023.80	$1.00
Admiral Shares	1,000.00	1,024.30	0.50

The calculations are based on expenses incurred in the most recent six-month period. The funds’ annualized six-month expense ratios for that period are: for the Short-Term Treasury Fund, 0.20% for Investor Shares and 0.10% for Admiral Shares; for the Short-Term Federal Fund, 0.20% for Investor Shares and 0.10% for Admiral Shares; for the Intermediate-Term Treasury Fund, 0.20% for Investor Shares and 0.10% for Admiral Shares; for the GNMA Fund, 0.21% for Investor Shares and 0.11% for Admiral Shares; and for the Long-Term Treasury Fund, 0.20% for Investor Shares and 0.10% for Admiral Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (181/365).

3

Short-Term Treasury Fund

Sector Diversification

As of July 31, 2019

Asset-Backed	0.4%
Treasury/Agency	99.6

The table reflects the fund’s market exposure. Any holdings in short-term reserves are excluded. The agency and mortgage-backed securities sectors may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government.

4

Short-Term Treasury Fund

Financial Statements (unaudited)

Statement of Net Assets

As of July 31, 2019

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.

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
U.S. Government and Agency Obligations (89.4%)
U.S. Government Securities (86.3%)
	United States Treasury Inflation Indexed Bonds	0.625%	4/15/23	225,000		234,077
	United States Treasury Note/Bond	1.375%	2/15/20	150,000		149,367
	United States Treasury Note/Bond	2.250%	2/29/20	150,000		150,070
	United States Treasury Note/Bond	1.125%	4/30/20	132,000		131,051
	United States Treasury Note/Bond	2.375%	4/30/20	250,000		250,470
	United States Treasury Note/Bond	1.500%	5/15/20	100,000		99,531
	United States Treasury Note/Bond	1.375%	5/31/20	85,000		84,495
	United States Treasury Note/Bond	1.500%	6/15/20	100,000		99,500
	United States Treasury Note/Bond	1.625%	6/30/20	100,000		99,578
	United States Treasury Note/Bond	1.875%	6/30/20	140,000		139,737
	United States Treasury Note/Bond	1.625%	7/31/20	140,000		139,409
	United States Treasury Note/Bond	1.500%	8/15/20	195,000		193,904
	United States Treasury Note/Bond	2.625%	8/15/20	120,000		120,713
	United States Treasury Note/Bond	1.375%	8/31/20	215,000		213,489
	United States Treasury Note/Bond	2.750%	9/30/20	100,000		100,828
	United States Treasury Note/Bond	1.625%	10/15/20	3,200		3,186
	United States Treasury Note/Bond	1.875%	12/15/20	11,150		11,134
	United States Treasury Note/Bond	2.500%	12/31/20	94,000		94,690
	United States Treasury Note/Bond	1.375%	1/31/21	110,000		109,055
1	United States Treasury Note/Bond	2.125%	1/31/21	152,000		152,356
	United States Treasury Note/Bond	2.250%	2/15/21	125,000		125,547
	United States Treasury Note/Bond	3.625%	2/15/21	32,000		32,805
	United States Treasury Note/Bond	1.125%	2/28/21	202,000		199,443
	United States Treasury Note/Bond	2.000%	2/28/21	50,000		50,039
	United States Treasury Note/Bond	1.375%	4/30/21	110,000		108,968
	United States Treasury Note/Bond	2.625%	5/15/21	190,000		192,316
	United States Treasury Note/Bond	1.375%	5/31/21	265,000		262,432
	United States Treasury Note/Bond	2.000%	5/31/21	215,000		215,303
	United States Treasury Note/Bond	1.625%	6/30/21	43,000		42,785
	United States Treasury Note/Bond	1.125%	7/31/21	100,000		98,500
	United States Treasury Note/Bond	2.750%	8/15/21	252,000		256,332
	United States Treasury Note/Bond	2.000%	8/31/21	340,000		340,796
	United States Treasury Note/Bond	2.750%	9/15/21	3,600		3,666
	United States Treasury Note/Bond	1.250%	10/31/21	180,000		177,525
	United States Treasury Note/Bond	1.875%	11/30/21	225,000		225,070
	United States Treasury Note/Bond	2.500%	1/15/22	50,000		50,765
	United States Treasury Note/Bond	1.875%	1/31/22	290,000		290,090
	United States Treasury Note/Bond	1.750%	2/28/22	27,000		26,933
	United States Treasury Note/Bond	1.875%	2/28/22	75,000		75,046
	United States Treasury Note/Bond	1.750%	4/30/22	35,000		34,918

5

Short-Term Treasury Fund

					Face		Market
				Maturity	Amount		Value·
		Coupon		Date	($000	)	($000	)
	United States Treasury Note/Bond	1.875%		4/30/22	50,000		50,039
	United States Treasury Note/Bond	1.750%		6/15/22	21,900		21,859
	United States Treasury Note/Bond	1.875%		7/31/22	120,000		120,113
	United States Treasury Note/Bond	1.625%		8/15/22	185,000		183,844
	United States Treasury Note/Bond	1.875%		8/31/22	85,000		85,093
	United States Treasury Note/Bond	1.625%		11/15/22	80,000		79,450
	United States Treasury Note/Bond	2.000%		11/30/22	203,530		204,548
	United States Treasury Note/Bond	2.125%		12/31/22	70,000		70,678
	United States Treasury Note/Bond	1.750%		1/31/23	303,000		302,100
	United States Treasury Note/Bond	2.000%		2/15/23	150,000		150,843
	United States Treasury Note/Bond	1.500%		3/31/23	29,750		29,397
	United States Treasury Note/Bond	1.375%		6/30/23	32,000		31,450
	United States Treasury Note/Bond	2.750%		7/31/23	8,300		8,589
	United States Treasury Note/Bond	1.375%		9/30/23	45,000		44,170
	United States Treasury Note/Bond	2.875%		9/30/23	65,000		67,681
	United States Treasury Note/Bond	2.250%		12/31/23	20,000		20,344
	United States Treasury Note/Bond	2.625%		12/31/23	165,000		170,465
	United States Treasury Note/Bond	2.250%		1/31/24	58,000		59,033
	United States Treasury Note/Bond	2.000%		4/30/24	81,000		81,582
	United States Treasury Note/Bond	2.000%		5/31/24	50,000		50,398
	United States Treasury Note/Bond	2.000%		6/30/24	70,000		70,503
	United States Treasury Note/Bond	2.125%		7/31/24	50,000		50,664
							7,338,762
Agency Bonds and Notes (3.1%)
2	AID-Tunisia	1.416%		8/5/21	12,800		12,569
3	Federal National Mortgage Assn.	0.000%		10/9/19	80,600		80,253
	Government Trust Certificate	0.000%		10/1/20	12,119		11,817
	Private Export Funding Corp.	1.450%		8/15/19	30,534		30,528
	Private Export Funding Corp.	2.250%		3/15/20	5,800		5,804
	Private Export Funding Corp.	2.300%		9/15/20	7,550		7,577
	Resolution Funding Corp. Principal Strip	0.000%		7/15/20	27,490		26,955
	Resolution Funding Corp. Principal Strip	0.000%		10/15/20	91,620		89,364
							264,867
Conventional Mortgage-Backed Securities (0.0%)
3,4	Freddie Mac Gold Pool	6.000%	10/1/27–4/1/28		61		68
Total U.S. Government and Agency Obligations (Cost $7,547,668)							7,603,697
Asset-Backed/Commercial Mortgage-Backed Securities (0.4%)
4	Small Business Administration Participation Certs 2002-20L	5.100%		12/1/22	481		491
4	Small Business Administration Participation Certs 2004-20F	5.520%		6/1/24	761		797
4	Small Business Administration Participation Certs 2004-20G	5.190%		7/1/24	331		346
4	Small Business Administration Participation Certs 2005-20J	5.090%		10/1/25	1,069		1,113
4	Small Business Administration Participation Certs 2006-20D	5.640%		4/1/26	1,396		1,470
4	Small Business Administration Participation Certs 2006-20L	5.120%		12/1/26	2,117		2,224
4	Small Business Administration Participation Certs 2007-20D	5.320%		4/1/27	1,582		1,663
4	Small Business Administration Participation Certs 2007-20G	5.820%		7/1/27	1,139		1,205

6

Short-Term Treasury Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
4	Small Business Administration Participation Certs 2007-20I	5.560%	9/1/27	6,269		6,642
4	Small Business Administration Participation Certs 2009-20I	4.200%	9/1/29	2,672		2,783
4	Small Business Administration Participation Certs 2009-20J	3.920%	10/1/29	4,072		4,223
4	Small Business Administration Participation Certs 2009-20K	4.090%	11/1/29	2,020		2,099
4	Small Business Administration Participation Certs 2018-20C	5.230%	3/1/27	1,770		1,853
4	Small Business Administration Participation Certs 2018-20E	5.310%	5/1/27	3,210		3,400
Total Asset-Backed/Commercial Mortgage-Backed Securities (Cost $30,107)						30,309
				Shares
Temporary Cash Investment (13.2%)
Money Market Fund (13.2%)
5	Vanguard Market Liquidity Fund
	(Cost $1,122,531)	2.386%		11,224,176		1,122,530
Total Investments (103.0%) (Cost $8,700,306)						8,756,536
Other Assets and Liabilities (-3.0%)
Other Assets						284,954
Liabilities						(536,630	)
						(251,676	)
Net Assets (100%)						8,504,860

	Amount
	($000	)
Statement of Assets and Liabilities
Assets
Investments in Securities, at Value
Unaffiliated Issuers	7,634,006
Affiliated Issuers	1,122,530
Total Investments in Securities	8,756,536
Investment in Vanguard	405
Receivables for Investment Securities Sold	242,994
Receivables for Accrued Income	34,881
Receivables for Capital Shares Issued	6,223
Variation Margin Receivable—Futures Contracts	70
Other Assets	381
Total Assets	9,041,490
Liabilities
Payables for Investment Securities Purchased	521,288
Payables for Capital Shares Redeemed	7,684
Payables for Distributions	3,212
Payables to Vanguard	2,057
Options Written, at Value6	302
Variation Margin Payable—Futures Contracts	2,087
Total Liabilities	536,630
Net Assets	8,504,860

7

Short-Term Treasury Fund

At July 31, 2019, net assets consisted of:

	Amount
	($000	)
Paid-in Capital	8,600,957
Total Distributable Earnings (Loss)	(96,097	)
Net Assets	8,504,860
Investor Shares–Net Assets
Applicable to 64,690,875 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	683,112
Net Asset Value Per Share–Investor Shares	$10.56
Admiral Shares–Net Assets
Applicable to 740,722,449 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	7,821,748
Net Asset Value Per Share–Admiral Shares	$10.56

·See Note A in Notes to Financial Statements.

1Securities with a value of $6,030,000 have been segregated as initial margin for open futures contracts.

2U.S. government-guaranteed.

3The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.

4The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.

5Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

6Includes premium received of $630,000.

8

Short-Term Treasury Fund

Derivative Financial Instruments Outstanding as of Period End
Options Written
				Notional		Market
	Expiration		Exercise	Amount		Value
	Date	Contracts	Price	($000	)	($000	)
Exchange-Traded Options
Call Options
10-Year U.S. Treasury Note Futures Contracts	8/23/19	552	$129.50	71,484		(17	)
Put Options
10-Year U.S. Treasury Note Futures Contracts	8/23/19	552	$127.50	70,380		(285	)
Total Options Written (Premiums Received $630)						(302	)

Futures Contracts
						($000	)
						Value and
		Number of				Unrealized
		Long (Short	)	Notional		Appreciation
	Expiration	Contracts		Amount		(Depreciation	)
Long Futures Contracts
2-Year U.S. Treasury Note	September 2019	10,159		2,178,153		(4,383	)
10-Year U.S. Treasury Note	September 2019	16		2,039		4
						(4,379	)
Short Futures Contracts
Ultra Long U.S. Treasury Bond	September 2019	(136	)	(24,149	)	(124	)
5-Year U.S. Treasury Note	September 2019	(8	)	(940	)	1
						(123	)
						(4,502	)

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

9

Short-Term Treasury Fund

Statement of Operations

	Six Months Ended July 31, 2019
	($000)
Investment Income
Income
Interest1	126,993
Total Income	126,993
Expenses
The Vanguard Group—Note B
Investment Advisory Services	560
Management and Administrative—Investor Shares	577
Management and Administrative—Admiral Shares	2,996
Marketing and Distribution—Investor Shares	43
Marketing and Distribution—Admiral Shares	214
Custodian Fees	19
Shareholders’ Reports—Investor Shares	14
Shareholders’ Reports—Admiral Shares	60
Trustees’ Fees and Expenses	2
Total Expenses	4,485
Net Investment Income	122,508
Realized Net Gain (Loss)
Investment Securities Sold1	13,682
Futures Contracts	20,357
Purchased Options	(114)
Written Options	688
Realized Net Gain (Loss)	34,613
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	37,006
Futures Contracts	(5,026)
Purchased Options	9
Written Options	374
Change in Unrealized Appreciation (Depreciation)	32,363
Net Increase (Decrease) in Net Assets Resulting from Operations	189,484

1Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $4,796,000, $17,000, and $7,000, respectively. Purchases and sales are for temporary cash investment purposes.

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

10

Short-Term Treasury Fund

Statement of Changes in Net Assets

	Six Months Ended		Year Ended
	July 31,		January 31,
	2019		2019
	($000	)	($000	)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	122,508		171,682
Realized Net Gain (Loss)	34,613		(97,804	)
Change in Unrealized Appreciation (Depreciation)	32,363		85,373
Net Increase (Decrease) in Net Assets Resulting from Operations	189,484		159,251
Distributions
Net Investment Income
Investor Shares	(9,761	)	(14,540	)
Admiral Shares	(112,814	)	(157,171	)
Realized Capital Gain
Investor Shares	—		—
Admiral Shares	—		—
Total Distributions	(122,575	)	(171,711	)
Capital Share Transactions
Investor Shares	6,262		(64,568	)
Admiral Shares	375,315		352,852
Net Increase (Decrease) from Capital Share Transactions	381,577		288,284
Total Increase (Decrease)	448,486		275,824
Net Assets
Beginning of Period	8,056,374		7,780,550
End of Period	8,504,860		8,056,374

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

11

Short-Term Treasury Fund

Financial Highlights

Investor Shares

	Six Months Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019		2019		2018		2017		2016		2015
Net Asset Value, Beginning of Period	$10.48		$10.49		$10.65		$10.73		$10.75		$10.71
Investment Operations
Net Investment Income	.150	1	.227	1	.127	1	.094		.074		.055
Net Realized and Unrealized Gain (Loss) on Investments	.079		(.009	)	(.160	)	(.048	)	(.004	)	.053
Total from Investment Operations	.229		.218		(.033	)	.046		.070		.108
Distributions
Dividends from Net Investment Income	(.149	)	(.228	)	(.127	)	(.094	)	(.074	)	(.055	)
Distributions from Realized Capital Gains	—		—		—		(.032	)	(.016	)	(.013	)
Total Distributions	(.149	)	(.228	)	(.127	)	(.126	)	(.090	)	(.068	)
Net Asset Value, End of Period	$10.56		$10.48		$10.49		$10.65		$10.73		$10.75
Total Return2	2.20%		2.11%		-0.31%		0.43%		0.66%		1.01%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$683		$671		$737		$900		$1,005		$1,044
Ratio of Total Expenses to Average Net Assets	0.20%		0.20%		0.20%		0.20%		0.20%		0.20%
Ratio of Net Investment Income to Average Net Assets	2.86%		2.18%		1.20%		0.87%		0.69%		0.52%
Portfolio Turnover Rate3	245%		282%		280%		249%		211%		87%

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

1Calculated based on average shares outstanding.

2Total 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.

3Includes 7%, 37%, 7%, 3%, 35%, and 22% attributable to mortgage-dollar-roll activity.

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

12

Short-Term Treasury Fund

Financial Highlights

Admiral Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019		2019		2018		2017		2016		2015
Net Asset Value, Beginning of Period	$10.48		$10.49		$10.65		$10.73		$10.75		$10.71
Investment Operations
Net Investment Income	.155	1	.238	1	.138	1	.105		.085		.066
Net Realized and Unrealized Gain (Loss) on Investments	.080		(.010	)	(.160	)	(.048	)	(.004	)	.053
Total from Investment Operations	.235		.228		(.022	)	.057		.081		.119
Distributions
Dividends from Net Investment Income	(.155	)	(.238	)	(.138	)	(.105	)	(.085	)	(.066	)
Distributions from Realized Capital Gains	—		—		—		(.032	)	(.016	)	(.013	)
Total Distributions	(.155	)	(.238	)	(.138	)	(.137	)	(.101	)	(.079	)
Net Asset Value, End of Period	$10.56		$10.48		$10.49		$10.65		$10.73		$10.75
Total Return2	2.25%		2.21%		-0.21%		0.53%		0.76%		1.11%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$7,822		$7,385		$7,044		$6,805		$6,271		$5,915
Ratio of Total Expenses to Average Net Assets	0.10%		0.10%		0.10%		0.10%		0.10%		0.10%
Ratio of Net Investment Income to Average Net Assets	2.96%		2.28%		1.30%		0.97%		0.79%		0.62%
Portfolio Turnover Rate3	245%		282%		280%		249%		211%		87%

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

1Calculated based on average shares outstanding.

2Total 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.

3Includes 7%, 37%, 7%, 3%, 35%, and 22% attributable to mortgage-dollar-roll activity.

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

13

Short-Term Treasury Fund

Notes to Financial Statements

Vanguard Short-Term Treasury 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.

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. Bonds and temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. 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 by methods deemed by the board of trustees to represent fair value.

2. Futures and Options: The fund uses futures contracts and options on futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. The primary risk associated with purchasing options is that interest rates move in such a way that the option is out-of-the-money, the position is worthless at expiration, and the fund loses the premium paid. The primary risk associated with writing options is that interest rates move in such a way that the option is in-the-money, the counterparty exercises the option, and the fund loses an amount equal to the market value of the option written less the premium received. Counterparty risk involving futures and exchange-traded options is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures and options on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

14

Short-Term Treasury Fund

During the six months ended July 31, 2019, the fund’s average investments in long and short futures contracts represented 24% and less than 1% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

Options on futures contracts are also valued at their quoted daily settlement prices. The premium paid for a purchased option is recorded in the Statement of Assets and Liabilities as an asset that is subsequently adjusted daily to the current market value of the option purchased. The premium received for a written option is recorded in the Statement of Assets and Liabilities as an asset with an equal liability that is subsequently adjusted daily to the current market value of the option written. Fluctuations in the value of the options are recorded in the Statement of Operations as unrealized appreciation (depreciation) until expired, closed, or exercised, at which time realized gains (losses) are recognized.

During the six months ended July 31, 2019, the fund’s average value of investments in options purchased and options written represented less than 1% of net assets, respectively, based on the average market values at each quarter-end during the period.

3. To Be Announced (TBA) Transactions: A TBA transaction is an agreement to buy or sell mortgage-backed securities with agreed-upon characteristics (face amount, coupon, maturity) for settlement at a future date. The fund may be a seller of TBA transactions to reduce its exposure to the mortgage-backed securities market or in order to sell mortgage-backed securities it owns under delayed-delivery arrangements. When the fund is a buyer of TBA transactions, it maintains cash or short-term investments in an amount sufficient to meet the purchase price at the settlement date of the TBA transaction. The primary risk associated with TBA transactions is that a counterparty may default on its obligations. The fund mitigates its counterparty risk by, among other things, performing a credit analysis of counterparties, allocating transactions among numerous counterparties, and monitoring its exposure to each counterparty. The fund may also enter into a Master Securities Forward Transaction Agreement (MSFTA) with certain counterparties and require them to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. Under an MSFTA, upon a counterparty default (including bankruptcy), the fund may terminate any TBA transactions with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements.

4. Mortgage Dollar Rolls: The fund enters into mortgage-dollar-roll transactions, in which the fund sells mortgage-backed securities to a dealer and simultaneously agrees to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are typically invested in high-quality short-term fixed income securities. The fund forgoes principal and interest paid on the securities sold, and is compensated by interest earned on the proceeds of the sale and by a lower price on the securities to be repurchased. The fund has also entered into mortgage-dollar-roll transactions in which the fund buys mortgage-backed securities from a dealer pursuant to a TBA transaction and simultaneously agrees to sell similar securities in the future at a predetermined price. The securities bought in mortgage-dollar-roll transactions are used to cover an open TBA sell position. The fund continues to earn interest on mortgage-backed security pools already held and receives a lower price on the securities to be sold in the future. The fund accounts for mortgage-dollar-roll transactions as purchases and sales; as such, these transactions

15

Short-Term Treasury Fund

may increase the fund’s portfolio turnover rate. Amounts to be received or paid in connection with open mortgage dollar rolls are included in Receivables for Investment Securities Sold or Payables for Investment Securities Purchased in the Statement of Assets and Liabilities.

5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2016–2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

6. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

7. Credit Facility: 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 that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

8. Other: Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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

B.In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs

16

Short-Term Treasury Fund

of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Assets and Liabilities. All other costs of operations payable to Vanguard are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $405,000, representing 0.00% of the fund’s net assets and 0.16% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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

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

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

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

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1		Level 2		Level 3
Investments	($000	)	($000	)	($000	)
U.S. Government and Agency Obligations	—		7,603,697		—
Asset-Backed/Commercial Mortgage-Backed Securities	—		30,309		—
Temporary Cash Investments	1,122,530		—		—
Option Written	(302	)	—		—
Futures Contracts—Assets1	70		—		—
Futures Contracts—Liabilities1	(2,087	)	—		—
Total	1,120,211		7,634,006		—

1 Represents variation margin on the last day of the reporting period.

D.As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000	)
Tax Cost	8,701,993
Gross Unrealized Appreciation	60,048
Gross Unrealized Depreciation	(9,049	)
Net Unrealized Appreciation (Depreciation)	50,999

17

Short-Term Treasury Fund

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $181,082,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

E.During the six months ended July 31, 2019, the fund purchased $8,252,977,000 of investment securities and sold $8,304,243,000 of investment securities, other than temporary cash investments.

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

	Six Months Ended				Year Ended
	July 31, 2019				January 31, 2019
	Amount		Shares		Amount		Shares
	($000	)	(000	)	($000	)	(000	)
Investor Shares
Issued	167,896		15,982		224,749		21,543
Issued in Lieu of Cash Distributions	8,475		804		12,859		1,232
Redeemed	(170,109	)	(16,172	)	(302,176	)	(28,954	)
Net Increase (Decrease)—Investor Shares	6,262		614		(64,568	)	(6,179	)
Admiral Shares
Issued	1,174,785		111,750		2,652,005		254,299
Issued in Lieu of Cash Distributions	90,788		8,613		126,894		12,159
Redeemed	(890,258	)	(84,628	)	(2,426,047	)	(233,016	)
Net Increase (Decrease)—Admiral Shares	375,315		35,735		352,852		33,442

G.Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

18

Short-Term Federal Fund

Sector Diversification

As of July 31, 2019

Asset-Backed	7.2	%
Government Mortgage-Backed	19.0
Treasury/Agency	73.8

The table reflects the fund’s market exposure. Any holdings in short-term reserves are excluded. The agency and mortgage-backed securities sectors may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government.

19

Short-Term Federal Fund

Financial Statements (unaudited)

Statement of Net Assets

As of July 31, 2019

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.

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
U.S. Government and Agency Obligations (83.7%)
U.S. Government Securities (26.1%)
	United States Treasury Inflation Indexed Bonds	0.125%	4/15/21	70,000		74,727
	United States Treasury Note/Bond	2.000%	7/31/20	45,000		44,972
	United States Treasury Note/Bond	1.375%	10/31/20	104,500		103,716
	United States Treasury Note/Bond	2.500%	12/31/20	3,400		3,425
	United States Treasury Note/Bond	2.000%	2/28/21	116,842		116,934
	United States Treasury Note/Bond	1.625%	6/30/21	37,000		36,815
	United States Treasury Note/Bond	2.625%	12/15/21	6,600		6,720
	United States Treasury Note/Bond	2.500%	1/15/22	26,000		26,398
	United States Treasury Note/Bond	1.500%	1/31/22	393,000		389,683
	United States Treasury Note/Bond	1.875%	1/31/22	14,000		14,004
	United States Treasury Note/Bond	1.875%	2/28/22	1,000		1,001
	United States Treasury Note/Bond	1.750%	3/31/22	100,000		99,750
	United States Treasury Note/Bond	2.250%	4/15/22	43,000		43,450
	United States Treasury Note/Bond	1.750%	6/15/22	46,400		46,313
	United States Treasury Note/Bond	1.625%	8/31/22	8,100		8,048
1	United States Treasury Note/Bond	1.875%	9/30/22	14,700		14,721
	United States Treasury Note/Bond	1.625%	11/15/22	116,000		115,202
	United States Treasury Note/Bond	2.750%	7/31/23	10,600		10,969
	United States Treasury Note/Bond	2.375%	2/29/24	13,000		13,311
	United States Treasury Note/Bond	1.750%	6/30/24	5,200		5,180
	United States Treasury Note/Bond	3.000%	10/31/25	33,300		35,454
						1,210,793
Agency Bonds and Notes (40.5%)
2	AID-Israel	0.000%	11/1/19	14,470		14,391
2	AID-Israel	5.500%	9/18/23	6,833		7,781
2	AID-Israel	5.500%	12/4/23	3,600		4,121
2	AID-Israel	5.500%	4/26/24	1,615		1,868
2	AID-Israel	0.000%	11/1/24	6,905		6,157
2	AID-Jordan	2.503%	10/30/20	2,600		2,611
2	AID-Tunisia	1.416%	8/5/21	8,800		8,641
3	Fannie Mae Principal Strip	0.000%	1/15/30	5,100		3,946
	Federal Home Loan Banks	1.750%	6/12/20	20,000		19,949
4	Federal Home Loan Banks	1.800%	8/28/20	50,000		49,851
4	Federal Home Loan Banks	1.800%	8/28/20	123,250		122,881
	Federal Home Loan Banks	3.250%	11/16/28	41,100		44,607
3,4	Federal Home Loan Mortgage Corp.	1.800%	4/13/20	75,000		74,824
3,4	Federal Home Loan Mortgage Corp.	1.700%	9/29/20	164,060		163,361
3,4	Federal Home Loan Mortgage Corp.	1.800%	9/29/20	75,000		74,758
3	Federal National Mortgage Assn.	0.000%	10/9/19	136,800		136,212

20

Short-Term Federal Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
3,4	Federal National Mortgage Assn.	1.250%	11/25/19	75,000		74,780
3,4	Federal National Mortgage Assn.	1.150%	11/29/19	77,500		77,248
3,4	Federal National Mortgage Assn.	1.750%	1/17/20	50,000		49,904
3	Federal National Mortgage Assn.	2.875%	9/12/23	9,900		10,287
3	Federal National Mortgage Assn.	2.500%	2/5/24	134,000		137,623
3	Federal National Mortgage Assn.	1.750%	7/2/24	181,000		179,711
	Government Trust Certificate	0.000%	4/1/20	10,419		10,270
	Government Trust Certificate	0.000%	10/1/20	7,711		7,519
	Private Export Funding Corp.	1.450%	8/15/19	24,042		24,037
	Private Export Funding Corp.	2.250%	3/15/20	12,393		12,402
	Private Export Funding Corp.	2.300%	9/15/20	17,450		17,511
	Private Export Funding Corp.	4.300%	12/15/21	4,430		4,668
	Private Export Funding Corp.	3.550%	1/15/24	15,500		16,527
	Private Export Funding Corp.	2.450%	7/15/24	5,300		5,405
	Private Export Funding Corp.	3.250%	6/15/25	16,200		17,179
	Resolution Funding Corp. Interest Strip	0.000%	4/15/26	12,990		11,211
	Resolution Funding Corp. Interest Strip	0.000%	1/15/27	11,864		10,013
	Resolution Funding Corp. Interest Strip	0.000%	7/15/27	7,094		5,901
	Resolution Funding Corp. Interest Strip	0.000%	10/15/27	9,894		8,176
	Resolution Funding Corp. Interest Strip	0.000%	1/15/28	6,400		5,254
	Resolution Funding Corp. Interest Strip	0.000%	4/15/28	4,590		3,740
	Resolution Funding Corp. Principal Strip	0.000%	7/15/20	88,370		86,649
	Resolution Funding Corp. Principal Strip	0.000%	10/15/20	269,717		263,077
	Tennessee Valley Authority	2.250%	3/15/20	61,100		61,127
	Tennessee Valley Authority	5.880%	4/1/36	21,000		28,876
	Tennessee Valley Authority Principal Strip	0.000%	11/1/25	17,342		15,025
						1,880,079
Conventional Mortgage-Backed Securities (10.4%)
3,4	Fannie Mae Pool	2.000%	10/1/27–7/1/28	5,344		5,349
3,4	Fannie Mae Pool	2.500%	2/1/28–9/1/31	23,155		23,338
3,4,5	Fannie Mae Pool	3.000%	12/1/20–8/1/34	93,374		95,237
3,4,5	Fannie Mae Pool	3.500%	8/1/20–9/1/34	44,515		45,957
3,4,5	Fannie Mae Pool	4.000%	8/1/19–10/1/34	26,549		27,535
3,4	Fannie Mae Pool	4.500%	12/1/19–10/1/25	650		673
3,4	Fannie Mae Pool	5.000%	9/1/19–3/1/38	2,425		2,577
3,4	Fannie Mae Pool	5.500%	2/1/20–1/1/25	160		164
3,4	Freddie Mac Gold Pool	2.000%	9/1/28–6/1/30	6,095		6,023
3,4	Freddie Mac Gold Pool	2.500%	6/1/22–10/1/31	18,011		18,149
3,4	Freddie Mac Gold Pool	3.000%	11/1/29–3/1/31	28,912		29,509
3,4	Freddie Mac Gold Pool	3.500%	3/1/21–8/1/29	11,108		11,504
3,4	Freddie Mac Gold Pool	4.000%	11/1/19–1/1/29	5,185		5,386
3,4	Freddie Mac Gold Pool	4.500%	9/1/19–9/1/26	3,718		3,815
3,4	Freddie Mac Gold Pool	5.000%	2/1/20–6/1/25	1,188		1,241
3,4	Freddie Mac Pool	3.500%	8/1/29	261		269
4,5	UMBS TBA	2.500%	7/1/34–9/1/34	173,000		173,838
4,5	UMBS TBA	3.500%	8/1/34	31,750		32,767
						483,331
Nonconventional Mortgage-Backed Securities (6.7%)
3,4,6	Fannie Mae Pool, US Treasury Yield Curve Rate T Note Constant Maturity 1YR + 2.218%	4.765%	12/1/40	1,108		1,174
3,4	Fannie Mae REMICS	3.000%	5/25/47	13,351		13,458
3,4,6	Fannie Mae REMICS 2005-95, 1M USD LIBOR + 0.410%	2.676%	11/25/35	883		883

21

Short-Term Federal Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
3,4,6	Fannie Mae REMICS 2007-4, 1M USD LIBOR + 0.445%	2.711%	2/25/37	308		310
3,4,6	Fannie Mae REMICS 2012-122, 1M USD LIBOR + 0.400%	2.666%	11/25/42	1,124		1,123
3,4,6	Fannie Mae REMICS 2013-19, 1M USD LIBOR + 0.300%	2.566%	9/25/41	1,419		1,414
3,4,6	Fannie Mae REMICS 2013-39, 1M USD LIBOR + 0.350%	2.616%	5/25/43	1,430		1,425
3,4,6	Fannie Mae REMICS 2015-22, 1M USD LIBOR + 0.300%	2.566%	4/25/45	1,202		1,194
3,4,6	Fannie Mae REMICS 2016-55, 1M USD LIBOR + 0.500%	2.766%	8/25/46	2,451		2,462
3,4	Fannie Mae REMICS 2017-109	3.500%	11/25/45	3,662		3,802
3,4	Fannie Mae REMICS 2018-13	3.000%	3/25/48	25,277		25,517
3,4	Fannie Mae REMICS 2018-15	3.500%	10/25/44	4,103		4,243
3,4	Fannie Mae-Aces 2017-74C	3.000%	8/25/46	12,968		13,245
3,4	Fannie Mae-Aces 2018-18D	3.500%	4/25/43	34,640		35,404
3,4	Fannie Mae-Aces 2018-76E	3.500%	7/25/43	18,144		18,568
3,4	FHLMC Multifamily Structured Pass Through Certificates 4395E	2.500%	4/15/37	25,118		25,240
3,4	Freddie Mac Non Gold Pool	4.953%	7/1/33	710		750
3,4,6	Freddie Mac Non Gold Pool, 1YR CMT + 2.236%	4.522%	7/1/35	4,703		4,975
3,4,6	Freddie Mac Non Gold Pool, 1YR CMT + 2.244%	4.683%	9/1/37	3,651		3,862
3,4	Freddie Mac REMICS	3.000%	11/25/47–12/15/47	15,322		15,543
3,4,6	Freddie Mac REMICS, 1M USD LIBOR + 0.350%	2.675%	11/15/36–8/15/43	2,163		2,166
3,4,6	Freddie Mac REMICS, 1M USD LIBOR + 0.360%	2.685%	11/15/36	807		811
3,4,6	Freddie Mac REMICS, 1M USD LIBOR + 0.450%	2.775%	6/15/42	403		404
4	Ginnie Mae REMICS	2.500%	9/20/43	6,186		6,174
4	Ginnie Mae REMICS	3.000%	1/20/45–3/20/48	127,429		128,679
						312,826
Total U.S. Government and Agency Obligations (Cost $3,863,597)						3,887,029
Asset-Backed/Commercial Mortgage-Backed Securities (6.5%)
4	Small Business Administration Participation Certs 2002-20L	5.100%	12/1/22	297		303
4	Small Business Administration Participation Certs 2004-20F	5.520%	6/1/24	699		732
4	Small Business Administration Participation Certs 2004-20G	5.190%	7/1/24	203		212
4	Small Business Administration Participation Certs 2005-20A	4.860%	1/1/25	207		216
4	Small Business Administration Participation Certs 2005-20B	4.625%	2/1/25	100		103
4	Small Business Administration Participation Certs 2005-20C	4.950%	3/1/25	73		75
4	Small Business Administration Participation Certs 2005-20G	4.750%	7/1/25	52		54

22

Short-Term Federal Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
4	Small Business Administration Participation Certs 2005-20J	5.090%	10/1/25	660		687
4	Small Business Administration Participation Certs 2006-20D	5.640%	4/1/26	859		905
4	Small Business Administration Participation Certs 2006-20L	5.120%	12/1/26	1,313		1,380
4	Small Business Administration Participation Certs 2007-20D	5.320%	4/1/27	984		1,034
4	Small Business Administration Participation Certs 2007-20G	5.820%	7/1/27	698		738
4	Small Business Administration Participation Certs 2007-20I	5.560%	9/1/27	3,864		4,094
4	Small Business Administration Participation Certs 2007-20L	5.290%	12/1/27	47		50
4	Small Business Administration Participation Certs 2008-20B	5.160%	2/1/28	125		133
4	Small Business Administration Participation Certs 2008-20C	5.490%	3/1/28	102		108
4	Small Business Administration Participation Certs 2008-20D	5.370%	4/1/28	257		274
4	Small Business Administration Participation Certs 2008-20F	5.680%	6/1/28	99		107
4	Small Business Administration Participation Certs 2008-20H	6.020%	8/1/28	84		91
4	Small Business Administration Participation Certs 2008-20J	5.630%	10/1/28	109		115
4	Small Business Administration Participation Certs 2009-10F	2.980%	11/1/19	25		25
4	Small Business Administration Participation Certs 2009-20A	5.720%	1/1/29	63		68
4	Small Business Administration Participation Certs 2009-20D	4.310%	4/1/29	64		67
4	Small Business Administration Participation Certs 2009-20I	4.200%	9/1/29	1,460		1,520
4	Small Business Administration Participation Certs 2009-20J	3.920%	10/1/29	2,212		2,294
4	Small Business Administration Participation Certs 2009-20K	4.090%	11/1/29	1,088		1,130
4	Small Business Administration Participation Certs 2010-20H	3.520%	8/1/30	176		182
4	Small Business Administration Participation Certs 2011-20B	4.220%	2/1/31	382		401
4	Small Business Administration Participation Certs 2011-20H	3.290%	8/1/31	78		81
4	Small Business Administration Participation Certs 2012-20I	2.200%	9/1/32	57		57
4	Small Business Administration Participation Certs 2013-20G	3.150%	7/1/33	91		94
4	Small Business Administration Participation Certs 2013-20K	3.380%	11/1/33	100		103
4	Small Business Administration Participation Certs 2017-20	2.850%	10/1/37	18,657		19,022
4	Small Business Administration Participation Certs 2017-20	2.780%	12/1/37	8,873		9,030

23

Short-Term Federal Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
4	Small Business Administration Participation Certs 2017-20	3.310%	4/1/38	29,771		31,065
4	Small Business Administration Participation Certs 2017-20	3.600%	6/1/38	15,370		16,313
4	Small Business Administration Participation Certs 2017-20	3.370%	1/1/39	9,571		10,063
4	Small Business Administration Participation Certs 2018-20	2.920%	1/1/38	12,255		12,561
4	Small Business Administration Participation Certs 2018-20	3.220%	2/1/38	19,869		20,658
4	Small Business Administration Participation Certs 2018-20C	5.230%	3/1/27	1,095		1,147
4	Small Business Administration Participation Certs 2018-20C	3.200%	3/1/38	41,282		42,914
4	Small Business Administration Participation Certs 2018-20E	5.310%	5/1/27	1,988		2,105
4	Small Business Administration Participation Certs 2018-20E	3.500%	5/1/38	8,510		8,990
4	Small Business Administration Participation Certs 2018-20J	3.770%	10/1/38	26,963		28,842
4	Small Business Administration Participation Certs 2018-20J	2.690%	7/1/44	11,000		11,081
4	Small Business Administration Participation Certs 2018-20K	3.870%	11/1/38	16,986		18,265
4	Small Business Administration Participation Certs 2018-20L	3.540%	12/1/38	21,594		22,841
4	Small Business Administration Participation Certs 2018-25F	3.670%	12/1/43	2,269		2,414
4	Small Business Administration Participation Certs 2019-20C	3.200%	3/1/39	9,000		9,386
4	Small Business Administration Participation Certs 2019-25E	3.070%	5/1/44	6,400		6,601
4	Small Business Administration Participation Certs 2019-25F	2.770%	6/1/44	10,400		10,499
Total Asset-Backed/Commercial Mortgage-Backed Securities (Cost $289,087)						301,230
				Shares
Temporary Cash Investment (15.2%)
Money Market Fund (15.2%)
7	Vanguard Market Liquidity Fund
	(Cost $704,719)	2.386%		7,046,466		704,717
Total Investments (105.4%) (Cost $4,857,403)						4,892,976
Other Assets and Liabilities (-5.4%)
Other Assets						225,079
Liabilities						(477,002	)
						(251,923	)
Net Assets (100%)						4,641,053

24

Short-Term Federal Fund

	Amount
	($000	)
Statement of Assets and Liabilities
Assets
Investments in Securities, at Value
Unaffiliated Issuers	4,188,259
Affiliated Issuers	704,717
Total Investments in Securities	4,892,976
Investment in Vanguard	221
Receivables for Investment Securities Sold	204,864
Receivables for Accrued Income	16,113
Receivables for Capital Shares Issued	3,623
Other Assets	258
Total Assets	5,118,055
Liabilities
Payables for Investment Securities Purchased	469,192
Payables for Capital Shares Redeemed	3,398
Payables for Distributions	1,024
Payables to Vanguard	1,809
Variation Margin Payable—Futures Contracts	1,579
Total Liabilities	477,002
Net Assets	4,641,053

25

Short-Term Federal Fund

At July 31, 2019, net assets consisted of:

	Amount
	($000	)
Paid-in Capital	4,691,981
Total Distributable Earnings (Loss)	(50,928	)
Net Assets	4,641,053
Investor Shares–Net Assets
Applicable to 55,113,142 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	588,998
Net Asset Value Per Share–Investor Shares	$10.69
Admiral Shares–Net Assets
Applicable to 379,154,979 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	4,052,055
Net Asset Value Per Share–Admiral Shares	$10.69

·See Note A in Notes to Financial Statements.

1 Securities with a value of $1,285,000 have been segregated as initial margin for open futures contracts.

2 U.S. government-guaranteed.

3 The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.

4 The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.

5 Includes securities purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of July 31, 2019.

6 Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.

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

CMT—Constant Maturity Treasury Rate.

LIBOR—London Interbank Offered Rate.

REMICS—Real Estate Mortgage Investment Conduits.

TBA—To Be Announced.

USD—U.S. Dollar.

26

Short-Term Federal Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts
						($000	)
						Value and
		Number of				Unrealized
		Long (Short	)	Notional		Appreciation
	Expiration	Contracts		Amount		(Depreciation	)
Long Futures Contracts
2-Year U.S. Treasury Note	September 2019	3,335		715,045		(2,501	)
5-Year U.S. Treasury Note	September 2019	3,651		429,192		(831	)
						(3,332	)
Short Futures Contracts
Ultra 10-Year U.S. Treasury Note	September 2019	(1,090	)	(150,250	)	462
10-Year U.S. Treasury Note	September 2019	(648	)	(82,569	)	29
30-Year U.S. Treasury Bond	September 2019	(159	)	(24,739	)	(1,035	)
Ultra Long U.S. Treasury Bond	September 2019	(111	)	(19,709	)	(76	)
						(620	)
						(3,952	)

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

27

Short-Term Federal Fund

Statement of Operations

	Six Months Ended
	July 31, 2019
	($000)
Investment Income
Income
Interest1	64,058
Total Income	64,058
Expenses
The Vanguard Group—Note B
Investment Advisory Services	310
Management and Administrative—Investor Shares	498
Management and Administrative—Admiral Shares	1,574
Marketing and Distribution—Investor Shares	33
Marketing and Distribution—Admiral Shares	113
Custodian Fees	11
Shareholders’ Reports—Investor Shares	12
Shareholders’ Reports—Admiral Shares	34
Trustees’ Fees and Expenses	1
Total Expenses	2,586
Net Investment Income	61,472
Realized Net Gain (Loss)
Investment Securities Sold1	5,361
Futures Contracts	2,424
Purchased Options	(395)
Written Options	433
Realized Net Gain (Loss)	7,823
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	48,134
Futures Contracts	(3,412)
Purchased Options	5
Written Options	27
Change in Unrealized Appreciation (Depreciation)	44,754
Net Increase (Decrease) in Net Assets Resulting from Operations	114,049

1 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $2,373,000, $12,000, and ($11,000), respectively. Purchases and sales are for temporary cash investment purposes.

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

28

Short-Term Federal Fund

Statement of Changes in Net Assets

	Six Months Ended		Year Ended
	July 31,		January 31,
	2019		2019
	($000	)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	61,472		99,235
Realized Net Gain (Loss)	7,823		(54,447)
Change in Unrealized Appreciation (Depreciation)	44,754		57,336
Net Increase (Decrease) in Net Assets Resulting from Operations	114,049		101,124
Distributions
Net Investment Income
Investor Shares	(7,547	)	(13,574)
Admiral Shares	(53,915	)	(85,703)
Realized Capital Gain
Investor Shares	—		—
Admiral Shares	—		—
Total Distributions	(61,462	)	(99,277)
Capital Share Transactions
Investor Shares	(40,007	)	(97,313)
Admiral Shares	43,303		(277,358)
Net Increase (Decrease) from Capital Share Transactions	3,296		(374,671)
Total Increase (Decrease)	55,883		(372,824)
Net Assets
Beginning of Period	4,585,170		4,957,994
End of Period	4,641,053		4,585,170

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

29

Short-Term Federal Fund

Financial Highlights

Investor Shares

	Six Months
	Ended
For a Share Outstanding	July 31,	Year Ended January 31,
Throughout Each Period	2019	2019	2018	2017	2016	2015
Net Asset Value, Beginning of Period	$10.57	$10.55	$10.70	$10.79	$10.82	$10.74
Investment Operations
Net Investment Income	.1361	.2081	.1421	.116	.095	.066
Net Realized and Unrealized Gain (Loss) on Investments	.121	.021	(.144)	(.063)	.005	.080
Total from Investment Operations	.257	.229	(.002)	.053	.100	.146
Distributions
Dividends from Net Investment Income	(.137)	(.209)	(.142)	(.116)	(.095)	(.066)
Distributions from Realized Capital Gains	—	—	(.006)	(.027)	(.035)	—
Total Distributions	(.137)	(.209)	(.148)	(.143)	(.130)	(.066)
Net Asset Value, End of Period	$10.69	$10.57	$10.55	$10.70	$10.79	$10.82
Total Return2	2.44%	2.20%	-0.02%	0.49%	0.93%	1.36%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$589	$622	$719	$827	$817	$924
Ratio of Total Expenses to Average Net Assets	0.20%	0.20%	0.20%	0.20%	0.20%	0.20%
Ratio of Net Investment Income to Average Net Assets	2.59%	1.98%	1.33%	1.07%	0.88%	0.61%
Portfolio Turnover Rate3	271%	327%	211%	304%	314%	361%

The expense ratio, net investment income ratio, and turnover rate 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.

3 Includes 52%, 90%, 30%, 38%, 75%, and 99% attributable to mortgage-dollar-roll activity.

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

30

Short-Term Federal Fund

Financial Highlights

Admiral Shares

	Six Months
	Ended
For a Share Outstanding	July 31,	Year Ended January 31,
Throughout Each Period	2019	2019	2018	2017	2016	2015
Net Asset Value, Beginning of Period	$10.57	$10.55	$10.70	$10.79	$10.82	$10.74
Investment Operations
Net Investment Income	.1421	.2191	.1531	.127	.105	.077
Net Realized and Unrealized Gain (Loss) on Investments	.120	.020	(.144)	(.063)	.005	.080
Total from Investment Operations	.262	.239	.009	.064	.110	.157
Distributions
Dividends from Net Investment Income	(.142)	(.219)	(.153)	(.127)	(.105)	(.077)
Distributions from Realized Capital Gains	—	—	(.006)	(.027)	(.035)	—
Total Distributions	(.142)	(.219)	(.159)	(.154)	(.140)	(.077)
Net Asset Value, End of Period	$10.69	$10.57	$10.55	$10.70	$10.79	$10.82
Total Return2	2.49%	2.30%	0.08%	0.59%	1.03%	1.47%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$4,052	$3,963	$4,239	$4,819	$4,342	$4,122
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	2.69%	2.08%	1.43%	1.17%	0.98%	0.71%
Portfolio Turnover Rate3	271%	327%	211%	304%	314%	361%

The expense ratio, net investment income ratio, and turnover rate 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.

3 Includes 52%, 90%, 30%, 38%, 75%, and 99% attributable to mortgage-dollar-roll activity.

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

31

Short-Term Federal Fund

Notes to Financial Statements

Vanguard Short-Term Federal 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.

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. Bonds and temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. 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 by methods deemed by the board of trustees to represent fair value.

2. Futures and Options: The fund uses futures contracts and options on futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. The primary risk associated with purchasing options is that interest rates move in such a way that the option is out-of-the-money, the position is worthless at expiration, and the fund loses the premium paid. The primary risk associated with writing options is that interest rates move in such a way that the option is in-the-money, the counterparty exercises the option, and the fund loses an amount equal to the market value of the option written less the premium received. Counterparty risk involving futures and exchange-traded options is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures and options on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

During the six months ended July 31, 2019, the fund’s average investments in long and short futures contracts represented 23% and 7% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

32

Short-Term Federal Fund

Options on futures contracts are also valued at their quoted daily settlement prices. The premium paid for a purchased option is recorded in the Statement of Assets and Liabilities as an asset that is subsequently adjusted daily to the current market value of the option purchased. The premium received for a written option is recorded in the Statement of Assets and Liabilities as an asset with an equal liability that is subsequently adjusted daily to the current market value of the option written. Fluctuations in the value of the options are recorded in the Statement of Operations as unrealized appreciation (depreciation) until expired, closed, or exercised, at which time realized gains (losses) are recognized.

During the six months ended July 31, 2019, the fund’s average value of investments in options purchased and options written each represented less than 1% of net assets, based on the average market values at each quarter-end during the period. The fund had no open options on futures contracts at July 31, 2019.

3. To Be Announced (TBA) Transactions: A TBA transaction is an agreement to buy or sell mortgage-backed securities with agreed-upon characteristics (face amount, coupon, maturity) for settlement at a future date. The fund may be a seller of TBA transactions to reduce its exposure to the mortgage-backed securities market or in order to sell mortgage-backed securities it owns under delayed-delivery arrangements. When the fund is a buyer of TBA transactions, it maintains cash or short-term investments in an amount sufficient to meet the purchase price at the settlement date of the TBA transaction. The primary risk associated with TBA transactions is that a counterparty may default on its obligations. The fund mitigates its counterparty risk by, among other things, performing a credit analysis of counterparties, allocating transactions among numerous counterparties, and monitoring its exposure to each counterparty. The fund may also enter into a Master Securities Forward Transaction Agreement (MSFTA) with certain counterparties and require them to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. Under an MSFTA, upon a counterparty default (including bankruptcy), the fund may terminate any TBA transactions with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements.

At July 31, 2019, counterparties had deposited in segregated accounts securities with a value of $107,000 and cash with a value of $91,000 in connection with TBA transactions.

4. Mortgage Dollar Rolls: The fund enters into mortgage-dollar-roll transactions, in which the fund sells mortgage-backed securities to a dealer and simultaneously agrees to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are typically invested in high-quality short-term fixed income securities. The fund forgoes principal and interest paid on the securities sold, and is compensated by interest earned on the proceeds of the sale and by a lower price on the securities to be repurchased. The fund has also entered into mortgage-dollar-roll transactions in which the fund buys mortgage-backed securities from a dealer pursuant to a TBA transaction and simultaneously agrees to sell similar securities in the future at a predetermined price. The securities bought in mortgage-dollar-roll transactions are used to cover an open TBA sell position. The fund continues to earn interest on mortgage-backed security pools already held and receives a lower price on the securities to be sold in the future. The fund accounts for mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the fund’s portfolio turnover rate. Amounts to be received or paid in connection with open mortgage dollar rolls are included in Receivables for Investment Securities Sold or Payables for Investment Securities Purchased in the Statement of Assets and Liabilities.

33

Short-Term Federal Fund

5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2016–2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

6. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

7. Credit Facility: 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 that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

8. Other: Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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

B.In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Assets and Liabilities. All other costs of operations payable to Vanguard are generally settled twice a month.

34

Short-Term Federal Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $221,000, representing 0.00% of the fund’s net assets and 0.09% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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

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

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

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

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1	Level 2	Level 3
Investments	($000)	($000)	($000)
U.S. Government and Agency Obligations	—	3,887,029	—
Asset-Backed/Commercial Mortgage-Backed Securities	—	301,230	—
Temporary Cash Investments	704,717	—	—
Futures Contracts—Liabilities1	(1,579)	—	—
Total	703,138	4,188,259	—

1 Represents variation margin on the last day of the reporting period.

D.   As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000)
Tax Cost	4,857,624
Gross Unrealized Appreciation	45,576
Gross Unrealized Depreciation	(14,176)
Net Unrealized Appreciation (Depreciation)	31,400

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $90,140,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

35

Short-Term Federal Fund

E.During the six months ended July 31, 2019, the fund purchased $5,099,106,000 of investment securities and sold $5,450,403,000 of investment securities, other than temporary cash investments.

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

	Six Months Ended			Year Ended
	July 31, 2019			January 31, 2019
	Amount	Shares		Amount	Shares
	($000)	(000	)	($000)	(000)
Investor Shares
Issued	105,261	9,906		152,102	14,484
Issued in Lieu of Cash Distributions	6,661	625		12,316	1,172
Redeemed	(151,929)	(14,324	)	(261,731)	(24,884)
Net Increase (Decrease)—Investor Shares	(40,007)	(3,793	)	(97,313)	(9,228)
Admiral Shares
Issued	698,709	65,772		1,380,847	131,440
Issued in Lieu of Cash Distributions	46,475	4,363		75,143	7,150
Redeemed	(701,881)	(66,013	)	(1,733,348)	(165,176)
Net Increase (Decrease)—Admiral Shares	43,303	4,122		(277,358)	(26,586)

G.Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

36

Intermediate-Term Treasury Fund

Sector Diversification

As of July 31, 2019

Asset-Backed	6.0	%
Treasury/Agency	94.0

The table reflects the fund’s market exposure. Any holdings in short-term reserves are excluded. The agency and mortgage-backed securities sectors may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government.

37

Intermediate-Term Treasury Fund

Financial Statements (unaudited)

Statement of Net Assets

As of July 31, 2019

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.

				Face	Market
			Maturity	Amount	Value·
		Coupon	Date	($000)	($000)
U.S. Government and Agency Obligations (91.7%)
U.S. Government Securities (87.7%)
	United States Treasury Inflation Indexed Bonds	0.125%	4/15/22	129,000	134,461
	United States Treasury Inflation Indexed Bonds	0.125%	7/15/22	50,000	55,368
	United States Treasury Inflation Indexed Bonds	0.625%	4/15/23	50,000	52,017
	United States Treasury Note/Bond	2.750%	9/15/21	2,600	2,648
	United States Treasury Note/Bond	1.625%	8/31/22	40,000	39,744
	United States Treasury Note/Bond	2.000%	10/31/22	82,100	82,510
	United States Treasury Note/Bond	2.375%	1/31/23	11,400	11,605
	United States Treasury Note/Bond	1.500%	3/31/23	19,500	19,268
	United States Treasury Note/Bond	1.625%	4/30/23	12,000	11,908
	United States Treasury Note/Bond	2.750%	4/30/23	69,200	71,470
	United States Treasury Note/Bond	1.750%	5/15/23	81,000	80,721
	United States Treasury Note/Bond	1.625%	5/31/23	37,000	36,711
	United States Treasury Note/Bond	2.750%	5/31/23	90,000	93,023
	United States Treasury Note/Bond	1.375%	6/30/23	63,000	61,917
	United States Treasury Note/Bond	1.250%	7/31/23	62,000	60,605
	United States Treasury Note/Bond	2.750%	7/31/23	110,900	114,764
	United States Treasury Note/Bond	2.750%	8/31/23	72,000	74,565
	United States Treasury Note/Bond	1.375%	9/30/23	45,000	44,170
	United States Treasury Note/Bond	2.875%	9/30/23	50,000	52,063
	United States Treasury Note/Bond	1.625%	10/31/23	70,000	69,409
	United States Treasury Note/Bond	2.875%	10/31/23	70,000	72,953
	United States Treasury Note/Bond	2.750%	11/15/23	60,000	62,250
	United States Treasury Note/Bond	2.125%	11/30/23	10,000	10,117
	United States Treasury Note/Bond	2.875%	11/30/23	80,300	83,763
	United States Treasury Note/Bond	2.625%	12/31/23	82,000	84,716
	United States Treasury Note/Bond	2.250%	1/31/24	58,000	59,033
	United States Treasury Note/Bond	2.500%	1/31/24	81,800	84,126
	United States Treasury Note/Bond	2.125%	2/29/24	12,000	12,148
	United States Treasury Note/Bond	2.375%	2/29/24	60,000	61,435
	United States Treasury Note/Bond	2.000%	4/30/24	37,000	37,266
	United States Treasury Note/Bond	1.750%	6/30/24	126,600	126,105
	United States Treasury Note/Bond	2.375%	8/15/24	54,000	55,367
	United States Treasury Note/Bond	2.125%	9/30/24	47,500	48,138
	United States Treasury Note/Bond	2.250%	10/31/24	38,500	39,258
	United States Treasury Note/Bond	2.250%	11/15/24	15,200	15,509
	United States Treasury Note/Bond	2.125%	11/30/24	85,000	86,169
	United States Treasury Note/Bond	2.250%	12/31/24	10,500	10,713

38

Intermediate-Term Treasury Fund

				Face	Market
			Maturity	Amount	Value·
		Coupon	Date	($000)	($000)
	United States Treasury Note/Bond	2.500%	1/31/25	20,000	20,666
	United States Treasury Note/Bond	2.000%	2/15/25	68,000	68,489
	United States Treasury Note/Bond	2.750%	2/28/25	81,000	84,809
	United States Treasury Note/Bond	2.625%	3/31/25	72,500	75,422
	United States Treasury Note/Bond	2.875%	4/30/25	133,000	140,233
	United States Treasury Note/Bond	2.125%	5/15/25	91,800	93,062
	United States Treasury Note/Bond	2.875%	5/31/25	75,300	79,429
	United States Treasury Note/Bond	2.750%	6/30/25	22,000	23,062
1	United States Treasury Note/Bond	2.875%	7/31/25	55,000	58,077
	United States Treasury Note/Bond	2.000%	8/15/25	139,250	140,143
	United States Treasury Note/Bond	2.750%	8/31/25	87,700	92,003
	United States Treasury Note/Bond	3.000%	9/30/25	80,900	86,095
	United States Treasury Note/Bond	3.000%	10/31/25	79,000	84,111
	United States Treasury Note/Bond	2.250%	11/15/25	126,500	129,108
	United States Treasury Note/Bond	2.875%	11/30/25	73,000	77,232
	United States Treasury Note/Bond	2.625%	12/31/25	94,000	98,083
	United States Treasury Note/Bond	2.625%	1/31/26	89,000	92,894
	United States Treasury Note/Bond	1.625%	2/15/26	122,384	120,242
	United States Treasury Note/Bond	6.000%	2/15/26	17,000	21,266
	United States Treasury Note/Bond	2.500%	2/28/26	119,000	123,351
	United States Treasury Note/Bond	2.250%	3/31/26	50,200	51,267
	United States Treasury Note/Bond	2.375%	4/30/26	47,400	48,785
	United States Treasury Note/Bond	1.625%	5/15/26	120,000	117,787
	United States Treasury Note/Bond	2.125%	5/31/26	34,300	34,761
	United States Treasury Note/Bond	1.500%	8/15/26	110,000	106,923
	United States Treasury Note/Bond	6.750%	8/15/26	17,000	22,403
	United States Treasury Note/Bond	2.000%	11/15/26	55,000	55,266
	United States Treasury Note/Bond	6.500%	11/15/26	5,000	6,551
	United States Treasury Note/Bond	6.625%	2/15/27	7,000	9,297
	United States Treasury Note/Bond	2.375%	5/15/27	31,000	31,969
	United States Treasury Note/Bond	2.250%	8/15/27	49,200	50,269
	United States Treasury Note/Bond	2.250%	11/15/27	99,000	101,120
1	United States Treasury Note/Bond	6.125%	11/15/27	14,000	18,460
	United States Treasury Note/Bond	2.750%	2/15/28	84,500	89,622
	United States Treasury Note/Bond	2.875%	5/15/28	114,000	122,122
	United States Treasury Note/Bond	2.875%	8/15/28	125,500	134,579
	United States Treasury Note/Bond	5.500%	8/15/28	10,000	12,900
	United States Treasury Note/Bond	3.125%	11/15/28	126,500	138,478
	United States Treasury Note/Bond	5.250%	11/15/28	19,500	24,863
	United States Treasury Note/Bond	2.625%	2/15/29	127,000	133,707
	United States Treasury Note/Bond	5.250%	2/15/29	10,000	12,817
	United States Treasury Note/Bond	2.375%	5/15/29	61,000	62,925
					5,212,661
Agency Bonds and Notes (4.0%)
2	AID-Israel	5.500%	9/18/23	6,558	7,468
2	AID-Israel	5.500%	12/4/23	3,600	4,121
2	AID-Israel	5.500%	4/26/24	1,663	1,924
2	AID-Israel	0.000%	5/1/24	13,215	11,782
2	AID-Israel	0.000%	11/1/24	75,000	66,871
2	AID-Israel	0.000%	8/15/25	15,929	13,877
2	AID-Tunisia	1.416%	8/5/21	12,400	12,176
	Private Export Funding Corp.	2.300%	9/15/20	13,600	13,648

39

Intermediate-Term Treasury Fund

				Face	Market
			Maturity	Amount	Value·
		Coupon	Date	($000)	($000)
	Private Export Funding Corp.	4.300%	12/15/21	4,150	4,373
	Private Export Funding Corp.	3.550%	1/15/24	18,500	19,725
	Private Export Funding Corp.	2.450%	7/15/24	6,085	6,205
	Private Export Funding Corp.	3.250%	6/15/25	18,600	19,724
	Resolution Funding Corp.	0.000%	4/15/26	15,950	13,766
	Resolution Funding Corp.	0.000%	1/15/28	7,800	6,403
	Resolution Funding Corp. Interest Strip	0.000%	1/15/27	14,588	12,312
	Resolution Funding Corp. Interest Strip	0.000%	7/15/27	8,704	7,240
	Resolution Funding Corp. Interest Strip	0.000%	10/15/27	12,004	9,920
	Resolution Funding Corp. Interest Strip	0.000%	4/15/28	5,560	4,530
					236,065
Total U.S. Government and Agency Obligations (Cost $5,301,078)					5,448,726
Asset-Backed/Commercial Mortgage-Backed Securities (5.8%)
3	Small Business Administration Participation Certs 2017-20	2.850%	10/1/37	22,803	23,249
3	Small Business Administration Participation Certs 2017-20	2.780%	12/1/37	10,536	10,723
3	Small Business Administration Participation Certs 2017-20	3.310%	4/1/38	36,810	38,410
3	Small Business Administration Participation Certs 2017-20	3.600%	6/1/38	18,252	19,372
3	Small Business Administration Participation Certs 2017-20	3.370%	1/1/39	11,915	12,528
3	Small Business Administration Participation Certs 2018-20	2.920%	1/1/38	15,182	15,561
3	Small Business Administration Participation Certs 2018-20	3.220%	2/1/38	24,604	25,581
3	Small Business Administration Participation Certs 2018-20C	3.200%	3/1/38	51,439	53,473
3	Small Business Administration Participation Certs 2018-20E	3.500%	5/1/38	10,401	10,988
3	Small Business Administration Participation Certs 2018-20J	3.770%	10/1/38	31,767	33,981
3	Small Business Administration Participation Certs 2018-20J	2.690%	7/1/44	14,000	14,103
3	Small Business Administration Participation Certs 2018-20K	3.870%	11/1/38	21,601	23,228
3	Small Business Administration Participation Certs 2018-20L	3.540%	12/1/38	27,680	29,278
3	Small Business Administration Participation Certs 2018-25F	3.670%	12/1/43	2,664	2,833
3	Small Business Administration Participation Certs 2019-20C	3.200%	3/1/39	11,100	11,577
3	Small Business Administration Participation Certs 2019-25E	3.070%	5/1/44	8,222	8,480
3	Small Business Administration Participation Certs 2019-25F	2.770%	6/1/44	13,600	13,729
Total Asset-Backed/Commercial Mortgage-Backed Securities (Cost $332,357)					347,094

40

Intermediate-Term Treasury Fund

				Market
				Value·
		Coupon	Shares	($000)
Temporary Cash Investment (3.6%)
Money Market Fund (3.6%)
4	Vanguard Market Liquidity Fund (Cost $211,414)	2.386%	2,113,944	211,416
Total Investments (101.1%) (Cost $5,844,849)				6,007,236
Other Assets and Liabilities (-1.1%)
Other Assets				433,070
Liabilities				(495,762)
				(62,692)
Net Assets (100%)				5,944,544

	Amount
	($000)
Statement of Assets and Liabilities
Assets
Investments in Securities, at Value
Unaffiliated Issuers	5,795,820
Affiliated Issuers	211,416
Total Investments in Securities	6,007,236
Investment in Vanguard	284
Receivables for Investment Securities Sold	389,673
Receivables for Accrued Income	37,636
Receivables for Capital Shares Issued	5,252
Variation Margin Receivable—Futures Contracts	81
Other Assets	144
Total Assets	6,440,306
Liabilities
Payables for Investment Securities Purchased	481,680
Payables for Capital Shares Redeemed	8,822
Payables for Distributions	1,788
Payables to Vanguard	2,074
Options Written, at Value5	212
Variation Margin Payable—Futures Contracts	1,186
Total Liabilities	495,762
Net Assets	5,944,544

41

Intermediate-Term Treasury Fund

At July 31, 2019, net assets consisted of:

	Amount
	($000)
Paid-in Capital	5,964,927
Total Distributable Earnings (Loss)	(20,383)
Net Assets	5,944,544
Investor Shares—Net Assets
Applicable to 75,284,768 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	850,800
Net Asset Value Per Share—Investor Shares	$11.30
Admiral Shares—Net Assets
Applicable to 450,730,639 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	5,093,744
Net Asset Value Per Share—Admiral Shares	$11.30

· See Note A in Notes to Financial Statements.

1 Securities with a value of $2,904,000 have been segregated as initial margin for open futures contracts.

2 U.S. government-guaranteed.

3 The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.

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

5 Includes premiums received of $442,000.

42

Intermediate-Term Treasury Fund

Derivative Financial Instruments Outstanding as of Period End

Options Written
				Notional		Market
	Expiration		Exercise	Amount		Value
	Date	Contracts	Price	($000	)	($000)
Exchange-Traded Options
Call Options
10-Year U.S. Treasury Note Futures Contracts	8/23/19	388	$129.50	50,246		(12)
Put Options
10-Year U.S. Treasury Note Futures Contracts	8/23/19	388	$127.50	49,470		(200)
Total Options Written (Premiums Received $442)						(212)

Futures Contracts
						($000)
						Value and
		Number of				Unrealized
		Long (Short	)	Notional		Appreciation
	Expiration	Contracts		Amount		(Depreciation)
Long Futures Contracts
2-Year U.S. Treasury Note	September 2019	1,976		423,667		(910)
5-Year U.S. Treasury Note	September 2019	2,463		289,537		(1,403)
						(2,313)
Short Futures Contracts
10-Year U.S. Treasury Note	September 2019	(1,782	)	(227,066	)	(191)
Ultra 10-Year U.S. Treasury Note	September 2019	(238	)	(32,807	)	(111)
Ultra Long U.S. Treasury Bond	September 2019	(95	)	(16,868	)	(88)
						(390)
						(2,703)

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

43

Intermediate-Term Treasury Fund

Statement of Operations

	Six Months Ended
	July 31, 2019
	($000)
Investment Income
Income
Interest1	81,721
Total Income	81,721
Expenses
The Vanguard Group—Note B
Investment Advisory Services	395
Management and Administrative—Investor Shares	712
Management and Administrative—Admiral Shares	1,984
Marketing and Distribution—Investor Shares	43
Marketing and Distribution—Admiral Shares	140
Custodian Fees	13
Shareholders’ Reports—Investor Shares	20
Shareholders’ Reports—Admiral Shares	31
Trustees’ Fees and Expenses	2
Total Expenses	3,340
Net Investment Income	78,381
Realized Net Gain (Loss)
Investment Securities Sold1	74,440
Futures Contracts	4,239
Options Purchased	(82)
Options Written	510
Realized Net Gain (Loss)	79,107
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	105,385
Futures Contracts	(1,751)
Options Purchased	7
Options Written	263
Change in Unrealized Appreciation (Depreciation)	103,904
Net Increase (Decrease) in Net Assets Resulting from Operations	261,392

1 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $588,000, ($3,000), and $1,000, respectively. Purchases and sales are for temporary cash investment purposes.

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

44

Intermediate-Term Treasury Fund

Statement of Changes in Net Assets

	Six Months Ended		Year Ended
	July 31,		January 31,
	2019		2019
	($000	)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	78,381		147,133
Realized Net Gain (Loss)	79,107		(157,952)
Change in Unrealized Appreciation (Depreciation)	103,904		195,785
Net Increase (Decrease) in Net Assets Resulting from Operations	261,392		184,966
Distributions
Net Investment Income
Investor Shares	(10,835	)	(21,125)
Admiral Shares	(67,593	)	(126,005)
Realized Capital Gain
Investor Shares	—		—
Admiral Shares	—		—
Total Distributions	(78,428	)	(147,130)
Capital Share Transactions
Investor Shares	(12,214	)	(134,125)
Admiral Shares	(39,283	)	(158,042)
Net Increase (Decrease) from Capital Share Transactions	(51,497	)	(292,167)
Total Increase (Decrease)	131,467		(254,331)
Net Assets
Beginning of Period	5,813,077		6,067,408
End of Period	5,944,544		5,813,077

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

45

Intermediate-Term Treasury Fund

Financial Highlights

Investor Shares

	Six Months
	Ended
For a Share Outstanding	July 31,	Year Ended January 31,
Throughout Each Period	2019	2019	2018	2017	2016	2015
Net Asset Value, Beginning of Period	$10.96	$10.88	$11.11	$11.51	$11.66	$11.29
Investment Operations
Net Investment Income	.1431	.2601	.1981	.177	.188	.188
Net Realized and Unrealized Gain (Loss) on Investments	.340	.081	(.230)	(.271)	(.057)	.410
Total from Investment Operations	.483	.341	(.032)	(.094)	.131	.598
Distributions
Dividends from Net Investment Income	(.143)	(.261)	(.198)	(.177)	(.188)	(.188)
Distributions from Realized Capital Gains	—	—	—	(.129)	(.093)	(.040)
Total Distributions	(.143)	(.261)	(.198)	(.306)	(.281)	(.228)
Net Asset Value, End of Period	$11.30	$10.96	$10.88	$11.11	$11.51	$11.66
Total Return2	4.43%	3.20%	-0.31%	-0.84%	1.17%	5.38%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$851	$837	$967	$1,185	$1,326	$1,391
Ratio of Total Expenses to Average Net Assets	0.20%	0.20%	0.20%	0.20%	0.20%	0.20%
Ratio of Net Investment Income to Average Net Assets	2.60%	2.42%	1.78%	1.53%	1.64%	1.66%
Portfolio Turnover Rate3	215%	231%	181%	152%	142%	63%

The expense ratio, net investment income ratio, and turnover rate 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.

3 Includes 1%, 35%, 6%, 3%, 34%, and 22% attributable to mortgage-dollar-roll activity.

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

46

Intermediate-Term Treasury Fund

Financial Highlights

Admiral Shares

	Six Months
	Ended
For a Share Outstanding	July 31,	Year Ended January 31,
Throughout Each Period	2019	2019	2018	2017	2016	2015
Net Asset Value, Beginning of Period	$10.96	$10.88	$11.11	$11.51	$11.66	$11.29
Investment Operations
Net Investment Income	.1491	.2721	.2101	.188	.199	.199
Net Realized and Unrealized Gain (Loss) on Investments	.340	.080	(.230)	(.271)	(.057)	.410
Total from Investment Operations	.489	.352	(.020)	(.083)	.142	.609
Distributions
Dividends from Net Investment Income	(.149)	(.272)	(.210)	(.188)	(.199)	(.199)
Distributions from Realized Capital Gains	—	—	—	(.129)	(.093)	(.040)
Total Distributions	(.149)	(.272)	(.210)	(.317)	(.292)	(.239)
Net Asset Value, End of Period	$11.30	$10.96	$10.88	$11.11	$11.51	$11.66
Total Return2	4.48%	3.30%	-0.21%	-0.74%	1.27%	5.48%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$5,094	$4,976	$5,100	$5,190	$4,849	$4,287
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	2.70%	2.52%	1.88%	1.63%	1.74%	1.76%
Portfolio Turnover Rate3	215%	231%	181%	152%	142%	63%

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

1Calculated based on average shares outstanding.

2Total 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.

3Includes 1%, 35%, 6%, 3%, 34%, and 22% attributable to mortgage-dollar-roll activity.

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

47

Intermediate-Term Treasury Fund

Notes to Financial Statements

Vanguard Intermediate-Term Treasury 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.

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. Bonds and temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. 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 by methods deemed by the board of trustees to represent fair value.

2. Futures and Options: The fund uses futures contracts and options on futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. The primary risk associated with purchasing options is that interest rates move in such a way that the option is out-of-the-money, the position is worthless at expiration, and the fund loses the premium paid. The primary risk associated with writing options is that interest rates move in such a way that the option is in-the-money, the counterparty exercises the option, and the fund loses an amount equal to the market value of the option written less the premium received. Counterparty risk involving futures and exchange-traded options is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures and options on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

48

Intermediate-Term Treasury Fund

During the six months ended July 31, 2019, the fund’s average investments in long and short futures contracts represented 10% and 5% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

Options on futures contracts are also valued at their quoted daily settlement prices. The premium paid for a purchased option is recorded in the Statement of Assets and Liabilities as an asset that is subsequently adjusted daily to the current market value of the option purchased. The premium received for a written option is recorded in the Statement of Assets and Liabilities as an asset with an equal liability that is subsequently adjusted daily to the current market value of the option written. Fluctuations in the value of the options are recorded in the Statement of Operations as unrealized appreciation (depreciation) until expired, closed, or exercised, at which time realized gains (losses) are recognized.

During the six months ended July 31, 2019, the fund’s average value of investments in options purchased and options written each represented less than 1% of net assets, based on the average market values at each quarter-end during the period.

3. To Be Announced (TBA) Transactions: A TBA transaction is an agreement to buy or sell mortgage-backed securities with agreed-upon characteristics (face amount, coupon, maturity) for settlement at a future date. The fund may be a seller of TBA transactions to reduce its exposure to the mortgage-backed securities market or in order to sell mortgage-backed securities it owns under delayed-delivery arrangements. When the fund is a buyer of TBA transactions, it maintains cash or short-term investments in an amount sufficient to meet the purchase price at the settlement date of the TBA transaction. The primary risk associated with TBA transactions is that a counterparty may default on its obligations. The fund mitigates its counterparty risk by, among other things, performing a credit analysis of counterparties, allocating transactions among numerous counterparties, and monitoring its exposure to each counterparty. The fund may also enter into a Master Securities Forward Transaction Agreement (MSFTA) with certain counterparties and require them to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. Under an MSFTA, upon a counterparty default (including bankruptcy), the fund may terminate any TBA transactions with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements.

4. Mortgage Dollar Rolls: The fund enters into mortgage-dollar-roll transactions, in which the fund sells mortgage-backed securities to a dealer and simultaneously agrees to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are typically invested in high-quality short-term fixed income securities. The fund forgoes principal and interest paid on the securities sold, and is compensated by interest earned on the proceeds of the sale and by a lower price on the securities to be repurchased. The fund has also entered into mortgage-dollar-roll transactions in which the fund buys mortgage-backed securities from a dealer pursuant to a TBA transaction and simultaneously agrees to sell similar securities in the future at a predetermined price. The securities bought in mortgage-dollar-roll transactions are used to cover an open TBA sell position. The fund continues to earn interest on mortgage-backed security pools already held and receives a lower price on the securities to be sold in the future. The fund accounts for mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the fund’s portfolio turnover rate. Amounts to be received or paid in connection with open mortgage dollar rolls are included in Receivables for Investment Securities Sold or Payables for Investment Securities Purchased in the Statement of Assets and Liabilities.

49

Intermediate-Term Treasury Fund

5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2016–2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

6. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

7. Credit Facility: 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 that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

8. Other: Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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

B.In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Assets and Liabilities. All other costs of operations payable to Vanguard are generally settled twice a month.

50

Intermediate-Term Treasury Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $284,000, representing 0.00% of the fund’s net assets and 0.11% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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

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

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

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

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1		Level 2		Level 3
Investments	($000	)	($000	)	($000	)
U.S. Government and Agency Obligations	—		5,448,726		—
Asset-Backed/Commercial Mortgage-Backed Securities	—		347,094		—
Temporary Cash Investments	211,416		—		—
Options Written	(212	)	—		—
Futures Contracts—Assets1	81		—		—
Futures Contracts—Liabilities1	(1,186	)	—		—
Total	210,099		5,795,820		—

1 Represents variation margin on the last day of the reporting period.

D.As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000	)
Tax Cost	5,846,794
Gross Unrealized Appreciation	162,091
Gross Unrealized Depreciation	(4,564	)
Net Unrealized Appreciation (Depreciation)	157,527

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $258,002,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

51

Intermediate-Term Treasury Fund

E.During the six months ended July 31, 2019, the fund purchased $6,302,596,000 of investment securities and sold $6,606,087,000 of investment securities, other than temporary cash investments.

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

	Six Months Ended			Year Ended
	July 31, 2019			January 31, 2019
	Amount		Shares	Amount		Shares
	($000	)	(000)	($000	)	(000	)
Investor Shares
Issued	93,656		8,444	187,620		17,368
Issued in Lieu of Cash Distributions	9,910		888	19,184		1,777
Redeemed	(115,780	)	(10,425)	(340,929	)	(31,640	)
Net Increase (Decrease)—Investor Shares	(12,214	)	(1,093)	(134,125	)	(12,495	)
Admiral Shares
Issued	629,186		56,610	1,151,931		106,887
Issued in Lieu of Cash Distributions	56,661		5,078	105,249		9,749
Redeemed	(725,130	)	(65,006)	(1,415,222	)	(131,219	)
Net Increase (Decrease)—Admiral Shares	(39,283	)	(3,318)	(158,042	)	(14,583	)

G.Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

52

GNMA Fund

Sector Diversification

As of July 31, 2019

Asset-Backed	0.3	%
Commercial Mortgage-Backed	7.1
Government Mortgage-Backed	92.1
Treasury/Agency	0.5

The table reflects the fund’s market exposure. Any holdings in short-term reserves are excluded. The agency and mortgage-backed securities sectors may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government.

53

GNMA Fund

Financial Statements (unaudited)

Statement of Net Assets

As of July 31, 2019

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.

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000)
U.S. Government and Agency Obligations (95.6%)
U.S. Government Securities (0.5%)
	United States Treasury Inflation Indexed Bonds	0.875%	1/15/29	114,000		121,836
Conventional Mortgage-Backed Securities (87.8%)
1,2	Fannie Mae Pool	2.500%	10/1/26–8/1/46	17,413		17,357
§,1,2,3	Fannie Mae Pool	2.610%	10/1/29	35,100		35,079
§,1,2,3	Fannie Mae Pool	2.700%	9/1/29	52,520		52,807
1,2	Fannie Mae Pool	2.720%	9/1/31	1,422		1,434
1,2	Fannie Mae Pool	2.775%	11/1/27	3,420		3,501
1,2	Fannie Mae Pool	2.950%	6/1/31	1,925		1,981
1,2	Fannie Mae Pool	2.960%	6/1/31	2,502		2,577
1,2,3	Fannie Mae Pool	3.000%	4/1/25–8/1/34	427,075		435,083
1,2	Fannie Mae Pool	3.050%	7/1/31	2,000		2,076
1,2	Fannie Mae Pool	3.110%	11/1/27–2/1/28	22,962		24,048
1,2	Fannie Mae Pool	3.190%	9/1/29	3,725		3,924
1,2	Fannie Mae Pool	3.210%	3/1/29–1/1/33	26,325		27,653
1,2	Fannie Mae Pool	3.220%	1/1/33	21,112		22,181
1,2	Fannie Mae Pool	3.240%	3/1/28	6,240		6,587
1,2	Fannie Mae Pool	3.250%	5/1/32	16,500		17,406
1,2	Fannie Mae Pool	3.260%	1/1/33	10,920		11,516
1,2	Fannie Mae Pool	3.270%	7/1/30	40,538		42,937
1,2	Fannie Mae Pool	3.280%	5/1/29	3,483		3,699
1,2	Fannie Mae Pool	3.320%	7/1/30	13,998		14,891
1,2	Fannie Mae Pool	3.330%	4/1/32	10,818		11,334
1,2	Fannie Mae Pool	3.350%	1/1/30–11/1/30	15,099		16,110
1,2	Fannie Mae Pool	3.370%	4/1/28	6,000		6,392
1,2	Fannie Mae Pool	3.380%	4/1/28	6,000		6,397
1,2	Fannie Mae Pool	3.410%	5/1/32–2/1/33	22,025		23,557
1,2	Fannie Mae Pool	3.420%	4/1/31	1,460		1,555
1,2	Fannie Mae Pool	3.430%	6/1/30	1,256		1,347
1,2	Fannie Mae Pool	3.440%	7/1/28	17,583		18,817
1,2	Fannie Mae Pool	3.460%	4/1/28–9/1/29	13,696		14,709
1,2	Fannie Mae Pool	3.490%	7/1/30	9,583		10,334
1,2,3	Fannie Mae Pool	3.500%	5/1/28–8/1/49	628,371		644,135
1,2	Fannie Mae Pool	3.510%	3/1/33	7,125		7,694
1,2	Fannie Mae Pool	3.540%	5/1/28–6/1/30	6,847		7,390
1,2	Fannie Mae Pool	3.550%	2/1/30	8,875		9,534
1,2	Fannie Mae Pool	3.570%	5/1/28–10/1/29	12,533		13,543
1,2	Fannie Mae Pool	3.580%	7/1/30–1/1/31	12,515		13,570
1,2	Fannie Mae Pool	3.590%	9/1/30	50,357		54,758

54

GNMA Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000)
1,2	Fannie Mae Pool	3.625%	4/1/30–4/1/30	27,406		29,874
1,2	Fannie Mae Pool	3.660%	7/1/30	15,150		16,569
1,2	Fannie Mae Pool	3.725%	4/1/33	9,744		10,733
1,2	Fannie Mae Pool	3.790%	3/1/34	1,928		2,123
1,2	Fannie Mae Pool	3.800%	7/1/30	6,300		6,969
1,2	Fannie Mae Pool	3.820%	11/1/28	3,831		4,178
1,2	Fannie Mae Pool	3.830%	6/1/34	3,230		3,589
1,2	Fannie Mae Pool	3.840%	8/1/30	7,600		8,438
1,2	Fannie Mae Pool	3.890%	5/1/30	13,937		15,402
1,2	Fannie Mae Pool	3.910%	8/1/33	11,910		13,344
1,2	Fannie Mae Pool	3.960%	5/1/34	5,957		6,698
1,2	Fannie Mae Pool	4.000%	5/1/46–6/1/46	7,315		7,606
1,2	Fannie Mae Pool	4.060%	3/1/29	3,912		4,397
1,2	Fannie Mae Pool	4.080%	2/1/29	2,857		3,206
1,2	Fannie Mae Pool	4.150%	10/1/28–1/1/31	72,992		82,908
1,2	Fannie Mae Pool	4.180%	11/1/30	29,024		32,114
1,2	Fannie Mae Pool	4.250%	10/1/28	1,208		1,367
1,2	Fannie Mae Pool	4.280%	11/1/28	5,154		5,851
1,2	Fannie Mae Pool	4.380%	10/1/28	9,486		10,834
1,2	Fannie Mae Pool	4.400%	8/1/28	2,141		2,445
1,2	Fannie Mae Pool	4.500%	12/1/40–3/1/44	2,688		2,889
1,2	Fannie Mae Pool	6.000%	7/1/22	2		2
1,2	Fannie Mae Pool	6.500%	2/1/29–5/1/40	2,068		2,255
1,2	Freddie Mac Gold Pool	3.000%	6/1/43–8/1/48	11,256		11,371
1,2	Freddie Mac Gold Pool	3.500%	11/1/47–9/1/48	100,209		103,375
1,2	Freddie Mac Gold Pool	4.000%	9/1/30–4/1/44	6,586		6,879
1,2	Freddie Mac Gold Pool	4.500%	4/1/34–2/1/46	60,488		64,522
1,2	Freddie Mac Gold Pool	5.000%	12/1/27–8/1/44	39,753		42,681
1	Ginnie Mae I Pool	2.500%	11/15/42–9/15/43	84,462		84,669
1	Ginnie Mae I Pool	3.000%	1/15/26–3/15/46	1,001,799		1,026,937
1,4	Ginnie Mae I Pool	3.500%	7/15/39–6/15/48	884,379		917,687
1	Ginnie Mae I Pool	3.750%	7/15/42	2,741		2,854
1	Ginnie Mae I Pool	3.875%	5/15/42–6/15/42	5,197		5,456
1	Ginnie Mae I Pool	4.000%	8/15/24–7/15/46	1,052,125		1,105,227
1	Ginnie Mae I Pool	4.500%	4/15/33–1/15/45	564,667		602,756
1	Ginnie Mae I Pool	5.000%	1/15/30–8/1/49	499,865		533,499
1	Ginnie Mae I Pool	5.500%	9/15/23–7/15/41	359,211		382,611
1	Ginnie Mae I Pool	6.000%	2/15/24–8/1/49	187,013		203,436
1	Ginnie Mae I Pool	6.500%	4/15/23–7/15/40	134,538		141,733
1	Ginnie Mae I Pool	7.000%	11/15/31–11/15/36	39,270		43,806
1	Ginnie Mae I Pool	7.250%	1/15/27–2/15/27	20		21
1,4	Ginnie Mae I Pool	7.500%	10/15/31	14,931		17,076
1	Ginnie Mae I Pool	8.000%	8/15/31	5,388		6,179
1	Ginnie Mae I Pool	8.500%	9/15/19–6/15/28	496		528
1	Ginnie Mae I Pool	9.000%	5/15/21	1		1
1	Ginnie Mae I Pool	9.500%	8/15/19–8/15/21	47		52
1	Ginnie Mae II Pool	1.500%	4/20/44–6/20/47	1,064		967
1	Ginnie Mae II Pool	2.000%	10/20/43–2/20/47	866		823
1	Ginnie Mae II Pool	2.500%	11/20/42–6/20/47	402,611		403,365
1,3	Ginnie Mae II Pool	3.000%	4/20/31–9/1/49	2,514,416		2,568,940
1,3,5,6	Ginnie Mae II Pool	3.500%	10/20/40–8/1/49	4,992,928		5,170,244
1,3	Ginnie Mae II Pool	4.000%	4/20/39–9/1/49	3,217,650		3,357,365
1,3	Ginnie Mae II Pool	4.500%	12/20/32–8/1/49	1,389,825		1,458,901
1,3	Ginnie Mae II Pool	5.000%	10/20/32–8/1/49	454,833		479,811
1	Ginnie Mae II Pool	5.500%	1/20/34–7/20/40	28,076		30,342

55

GNMA Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000)
1	Ginnie Mae II Pool	6.000%	4/20/28–8/20/40	36,469		40,473
1	Ginnie Mae II Pool	6.500%	4/20/37–3/20/41	1,000		1,123
1	Ginnie Mae II Pool	7.500%	6/20/25–8/20/25	85		97
						20,677,511
Nonconventional Mortgage-Backed Securities (7.3%)
1,2	Fannie Mae Pool	2.338%	8/1/43	10,052		10,023
1,2	Fannie Mae Pool	2.802%	9/1/44	10,890		10,934
1,2	Fannie Mae REMICS	2.000%	9/25/42	10,589		10,313
1,2	Fannie Mae REMICS	2.500%	10/25/42	11,821		11,892
1,2	Fannie Mae REMICS	3.000%	6/25/43–10/25/48	122,359		124,859
1,2	Fannie Mae REMICS	3.500%	7/25/44–12/25/58	115,501		120,935
1,2	Fannie Mae REMICS	6.000%	10/25/28–9/25/32	3,803		4,202
1,2	Freddie Mac Non Gold Pool	2.218%	9/1/43	7,907		7,859
1,2	Freddie Mac Non Gold Pool	2.266%	8/1/43	15,940		15,867
1,2	Freddie Mac Non Gold Pool	2.666%	10/1/44	20,890		20,861
1,2	Freddie Mac Non Gold Pool	2.737%	7/1/44	5,009		5,004
1,2	Freddie Mac Non Gold Pool	2.842%	10/1/44	9,887		9,898
1,2	Freddie Mac Non Gold Pool	2.891%	4/1/44	9,818		10,286
1,2	Freddie Mac Non Gold Pool	2.933%	9/1/44	6,187		6,465
1,2	Freddie Mac Non Gold Pool	3.083%	10/1/44	15,751		16,439
1,2	Freddie Mac REMICS	2.000%	4/15/42	10,239		9,969
1,2	Freddie Mac REMICS	3.000%	8/15/42–3/15/48	99,054		99,703
1,2	Freddie Mac REMICS	4.000%	11/15/40	10,382		11,220
1,2	Freddie Mac REMICS	6.000%	4/15/28–11/15/32	10,339		11,520
1	Ginnie Mae REMICS	2.000%	7/20/42	51,246		49,759
1	Ginnie Mae REMICS	2.350%	5/17/46	34,429		34,085
1	Ginnie Mae REMICS	2.375%	4/20/44	6,937		6,906
*,1	Ginnie Mae REMICS, 1M USD LIBOR + 0.200%	2.472%	2/20/37	2,755		2,745
1	Ginnie Mae REMICS	2.500%	12/16/39–11/20/45	68,193		65,926
1	Ginnie Mae REMICS	2.650%	11/17/48	15,900		15,789
1	Ginnie Mae REMICS	3.000%	3/20/40–6/20/47	126,592		127,875
1	Ginnie Mae REMICS	3.000%	4/20/47	13,308		13,359
1	Ginnie Mae REMICS	3.250%	8/20/44	8,372		8,654
1	Ginnie Mae REMICS	3.500%	7/20/43–9/20/44	32,421		33,479
1	Ginnie Mae REMICS	4.500%	6/20/39	3,563		3,939
1	Ginnie Mae REMICS	5.000%	6/16/37	12,373		13,863
1	Ginnie Mae REMICS	5.500%	8/16/36	10,935		12,198
1	Government National Mortgage Assn.	1.750%	10/20/42	6,001		5,742
1	Government National Mortgage Assn.	2.000%	1/20/42–10/20/44	10,271		9,994
1	Government National Mortgage Assn.	2.250%	3/16/45	17,752		17,564
1	Government National Mortgage Assn.	2.500%	5/20/41–1/20/48	179,003		177,334
1	Government National Mortgage Assn.	2.750%	6/16/43	22,779		22,848
1	Government National Mortgage Assn.	3.000%	6/20/39–6/20/49	523,434		532,811
1	Government National Mortgage Assn.	3.250%	2/20/49	2,845		2,994
1	Government National Mortgage Assn.	3.500%	8/16/44–2/20/49	23,903		25,535
1	Government National Mortgage Assn.	3.750%	12/16/39	1,956		2,185
						1,703,833
Total U.S. Government and Agency Obligations (Cost $22,254,243)						22,503,180
Asset-Backed/Commercial Mortgage-Backed Securities (0.3%)
1,2	Fannie Mae-Aces	2.885%	5/25/29	70,000		72,116
Total Asset-Backed/Commercial Mortgage-Backed Securities (Cost $71,399)						72,116

56

GNMA Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000)
Temporary Cash Investments (19.2%)
Repurchase Agreements (6.6%)
	Bank of America Securities, LLC (Dated 7/31/19, Repurchase Value $35,903,000, collateralized by Government National Mortgage Assn., 3.500%, 5/20/49, with a value of $36,618,000)	2.560%	8/1/19	35,900		35,900
	Barclays Capital Inc. (Dated 7/31/19, Repurchase Value $264,719,000, collateralized by U.S. Treasury Note/Bond, 2.625%, 12/31/23, with a value of $269,994,000)	2.530%	8/1/19	264,700		264,700
	Citigroup Global Markets Inc. (Dated 7/31/19, Repurchase Value $101,107,000, collateralized by U.S. Treasury Bill, 0.000%, 8/1/19, and U.S. Treasury Note/Bond, 0.750%–3.000%, 8/15/19–2/15/49, with a value of $103,122,000)	2.520%	8/1/19	101,100		101,100
	HSBC Bank USA (Dated 7/31/19, Repurchase Value $45,403,000, collateralized by Federal Home Loan Mortgage Corp., 4.000%, 6/1/48, and Federal National Mortgage Assn., 2.500%–8.000%, 4/1/28–6/1/49, with a value of $46,308,000)	2.540%	8/1/19	45,400		45,400
	HSBC Bank USA (Dated 7/31/19, Repurchase Value $109,908,000, collateralized by U.S. Treasury Bill, 0.000%, 11/14/19–1/16/20, and U.S. Treasury Note/Bond, 0.750%–2.000%, 6/30/21–2/15/42, with a value of $112,098,000)	2.530%	8/1/19	109,900		109,900
	Natixis SA (Dated 7/31/19, Repurchase Value $402,128,000, collateralized by Federal Home Loan Mortgage Corp., 0.000%, 3/15/29–3/15/31, Federal National Mortgage Assn., 0.000%, 5/15/25–5/15/30, U.S. Treasury Bill, 0.000%, 8/29/19–7/16/20, and U.S. Treasury Note/Bond, 0.375%–8.125%, 2/15/20–5/15/47, with a value of $410,142,000)	2.530%	8/1/19	402,100		402,100
	Societe Generale (Dated 7/31/19, Repurchase Value $222,616,000, collateralized by U.S. Treasury Bill, 0.000%, 8/1/19, and U.S. Treasury Note/Bond, 2.250%–3.625%, 3/31/23–2/15/44, with a value of $227,052,000)	2.550%	8/1/19	222,600		222,600

57

GNMA Fund

					Face			Market
				Maturity	Amount			Value·
			Coupon	Date	($000		)	($000)
	TD Securities (USA) LLC (Dated 7/31/19, Repurchase Value $117,708,000, collateralized by Federal National Mortgage Assn., 3.500%, 5/1/49–7/1/49, with a value of $120,054,000)		2.550%	8/1/19	117,700			117,700
	Wells Fargo & Co. (Dated 7/31/19, Repurchase Value $266,419,000, collateralized by Federal Home Loan Mortgage Corp., 2.500%–5.000%, 9/1/31–5/1/48, and Federal National Mortgage Assn., 2.000%–5.000%, 10/1/27–2/1/57, with a value of $271,728,000)		2.540%	8/1/19	266,400			266,400
								1,565,800
U.S. Government and Agency Obligations (8.0%)
	Federal Home Loan Bank Discount Notes		2.181%	8/1/19	175,000			174,989
	Federal Home Loan Bank Discount Notes		2.132%	8/5/19	350,000			349,916
	Federal Home Loan Bank Discount Notes		2.132%	8/8/19	350,000			349,853
	United States Treasury Bill	2.079%–2.136%		8/13/19	600,000			599,610
	United States Treasury Bill		2.115%	8/27/19	400,000			399,436
								1,873,804
						Shares
Money Market Fund (4.6%)
7	Vanguard Market Liquidity Fund		2.386%		10,951,972			1,095,307
Total Temporary Cash Investments (Cost $4,534,843)								4,534,911
Total Investments (115.1%) (Cost $26,860,485)								27,110,207
Other Assets and Liabilities (-15.1%)
Other Assets								3,106,077
Liabilities								(6,669,291)
								(3,563,214)
Net Assets (100%)								23,546,993

58

GNMA Fund

	Amount
	($000)
Statement of Assets and Liabilities
Assets
Investments in Securities, at Value
Unaffiliated Issuers	26,014,900
Affiliated Issuers	1,095,307
Total Investments in Securities	27,110,207
Investment in Vanguard	1,062
Receivables for Investment Securities Sold	3,011,633
Receivables for Accrued Income	67,805
Receivables for Capital Shares Issued	23,080
Variation Margin Receivable—Futures Contracts	254
Other Assets	2,243
Total Assets	30,216,284
Liabilities
Payables for Investment Securities Purchased	6,621,758
Payables to Investment Advisor	552
Payables for Capital Shares Redeemed	11,791
Payables for Distributions	9,076
Payables to Vanguard	21,933
Variation Margin Payable—Futures Contracts	3,709
Variation Margin Payable—CC Swap Contracts	472
Total Liabilities	6,669,291
Net Assets	23,546,993

59

GNMA Fund

At July 31, 2019, net assets consisted of:

	Amount
	($000)
Paid-in Capital	23,729,201
Total Distributable Earnings (Loss)	(182,208)
Net Assets	23,546,993
Investor Shares—Net Assets
Applicable to 678,251,009 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	7,123,598
Net Asset Value Per Share—Investor Shares	$10.50
Admiral Shares—Net Assets
Applicable to 1,563,702,136 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	16,423,395
Net Asset Value Per Share—Admiral Shares	$10.50

· See Note A in Notes to Financial Statements.

* Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.

§ Security value determined using significant unobservable inputs.

1 The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments.

2 The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.

3 Includes securities purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of July 31, 2019.

4 Securities with a value of $18,472,000 have been segregated as initial margin for open futures contracts.

5 Securities with a value of $34,387,000 have been segregated as initial margin for open centrally cleared swap contracts.

6 Securities with a value of $685,000 have been segregated as collateral for certain open To Be Announced (TBA) transactions.

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

CC—Centrally Cleared.

REMICS—Real Estate Mortgage Investment Conduits.

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GNMA Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts
						($000)
						Value and
		Number of				Unrealized
		Long (Short	)	Notional		Appreciation
	Expiration	Contracts		Amount		(Depreciation)
Long Futures Contracts
5-Year U.S. Treasury Note	September 2019	6,243		733,894		5,384
10-Year U.S. Treasury Note	September 2019	3,252		414,376		(574)
						4,810
Short Futures Contracts
Ultra Long U.S. Treasury Bond	September 2019	(756	)	(134,237	)	(4,540)
Ultra 10-Year U.S. Treasury Note	September 2019	(4,619	)	(636,700	)	(1,321)
						(5,861)
						(1,051)

Centrally Cleared Interest Rate Swaps
				Fixed		Floating
				Interest		Interest
				Rate		Rate				Unrealized
	Future	Notional		Received		Received				Appreciation
	Effective	Amount		(Paid	)	(Paid	)	Value		(Depreciation)
Termination Date	Date	($000	)	(%	)1	(%	)2	($000	)	($000)
4/30/25	N/A	521,800		(3.000	)	2.266		(33,365	)	(33,360)
3/21/28	N/A	253,223		(2.250	)	2.386		(6,902	)	(9,709)
								(40,267	)	(43,069)

1 Fixed interest payment received/paid semiannually.

2 Based on 3M USD LIBOR as of the most recent payment date. Floating interest payment received/paid quarterly.

LIBOR—London Interbank Offered Rate.

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

61

GNMA Fund

Statement of Operations

	Six Months Ended
	July 31, 2019
	($000)
Investment Income
Income
Interest1	345,572
Total Income	345,572
Expenses
Investment Advisory Fees—Note B	1,089
The Vanguard Group—Note C
Management and Administrative—Investor Shares	6,318
Management and Administrative—Admiral Shares	6,951
Marketing and Distribution—Investor Shares	268
Marketing and Distribution—Admiral Shares	318
Custodian Fees	227
Shareholders’ Reports—Investor Shares	96
Shareholders’ Reports—Admiral Shares	83
Trustees’ Fees and Expenses	13
Total Expenses	15,363
Net Investment Income	330,209
Realized Net Gain (Loss)
Investment Securities Sold1	86,396
Futures Contracts	33,621
Swap Contracts	(39,138)
Realized Net Gain (Loss)	80,879
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	384,207
Futures Contracts	(9,506)
Swap Contracts	(32,596)
Change in Unrealized Appreciation (Depreciation)	342,105
Net Increase (Decrease) in Net Assets Resulting from Operations	753,193

1Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from affiliated companies of the fund were $8,082,000, $0, and $3,000, respectively. Purchases and sales are for temporary cash investment purposes.

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

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GNMA Fund

Statement of Changes in Net Assets

	Six Months Ended		Year Ended
	July 31,		January 31,
	2019		2019
	($000	)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	330,209		669,601
Realized Net Gain (Loss)	80,879		(183,268)
Change in Unrealized Appreciation (Depreciation)	342,105		106,760
Net Increase (Decrease) in Net Assets Resulting from Operations	753,193		593,093
Distributions
Net Investment Income
Investor Shares	(101,890	)	(205,195)
Admiral Shares	(234,078	)	(461,404)
Realized Capital Gain
Investor Shares	—		—
Admiral Shares	—		—
Total Distributions	(335,968	)	(666,599)
Capital Share Transactions
Investor Shares	279,393		(859,525)
Admiral Shares	1,429,752		(1,735,093)
Net Increase (Decrease) from Capital Share Transactions	1,709,145		(2,594,618)
Total Increase (Decrease)	2,126,370		(2,668,124)
Net Assets
Beginning of Period	21,420,623		24,088,747
End of Period	23,546,993		21,420,623

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

63

GNMA Fund

Financial Highlights

Investor Shares

	Six Months
	Ended
For a Share Outstanding	July 31,	Year Ended January 31,
Throughout Each Period	2019	2019	2018	2017	2016	2015
Net Asset Value, Beginning of Period	$10.31	$10.32	$10.51	$10.77	$10.88	$10.61
Investment Operations
Net Investment Income	.1531	.2981	.2841	.236	.249	.275
Net Realized and Unrealized Gain (Loss) on Investments	.192	(.011)	(.193)	(.183)	(.055)	.278
Total from Investment Operations	.345	.287	.091	.053	.194	.553
Distributions
Dividends from Net Investment Income	(.155)	(.297)	(.281)	(.237)	(.250)	(.274)
Distributions from Realized Capital Gains	—	—	—	(.076)	(.054)	(.009)
Total Distributions	(.155)	(.297)	(.281)	(.313)	(.304)	(.283)
Net Asset Value, End of Period	$10.50	$10.31	$10.32	$10.51	$10.77	$10.88
Total Return2	3.37%	2.85%	0.85%	0.49%	1.83%	5.29%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$7,124	$6,715	$7,598	$7,993	$8,483	$9,163
Ratio of Total Expenses to Average Net Assets	0.21%	0.21%	0.21%	0.21%	0.21%	0.21%
Ratio of Net Investment Income to Average Net Assets	2.96%	2.93%	2.70%	2.19%	2.33%	2.56%
Portfolio Turnover Rate3	584%	415%	620%	926%	706%	685%

The expense ratio, net investment income ratio, and turnover rate 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.

3 Includes 172%, 200%, 156%, 300%, 219%, and 268% attributable to mortgage-dollar-roll activity.

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

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GNMA Fund

Financial Highlights

Admiral Shares

	Six Months
	Ended
For a Share Outstanding	July 31,	Year Ended January 31,
Throughout Each Period	2019	2019	2018	2017	2016	2015
Net Asset Value, Beginning of Period	$10.31	$10.32	$10.51	$10.77	$10.88	$10.61
Investment Operations
Net Investment Income	.1581	.3091	.2941	.247	.260	.286
Net Realized and Unrealized Gain (Loss) on Investments	.193	(.012)	(.192)	(.183)	(.055)	.278
Total from Investment Operations	.351	.297	.102	.064	.205	.564
Distributions
Dividends from Net Investment Income	(.161)	(.307)	(.292)	(.248)	(.261)	(.285)
Distributions from Realized Capital Gains	—	—	—	(.076)	(.054)	(.009)
Total Distributions	(.161)	(.307)	(.292)	(.324)	(.315)	(.294)
Net Asset Value, End of Period	$10.50	$10.31	$10.32	$10.51	$10.77	$10.88
Total Return2	3.42%	2.95%	0.95%	0.59%	1.93%	5.39%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$16,423	$14,706	$16,491	$17,613	$17,419	$17,544
Ratio of Total Expenses to Average Net Assets	0.11%	0.11%	0.11%	0.11%	0.11%	0.11%
Ratio of Net Investment Income to Average Net Assets	3.06%	3.03%	2.80%	2.29%	2.43%	2.66%
Portfolio Turnover Rate3	584%	415%	620%	926%	706%	685%

The expense ratio, net investment income ratio, and turnover rate 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.

3 Includes 172%, 200%, 156%, 300%, 219%, and 268% attributable to mortgage-dollar-roll activity.

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

65

GNMA Fund

Notes to Financial Statements

Vanguard GNMA 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.

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. Bonds and temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. 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 by methods deemed by the board of trustees to represent fair value.

2. Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

During the six months ended July 31, 2019, the fund’s average investments in long and short futures contracts represented 5% and 1% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

3. Swap Contracts: The fund enters into interest rate swap transactions to adjust the fund’s sensitivity to changes in interest rates and maintain the ability to generate income at prevailing market rates. Under the terms of the swaps, one party pays the other an amount that is a fixed percentage rate applied to a notional amount. In return, the counterparty agrees to pay a floating rate, which is reset periodically based on short-term interest rates, applied to the same notional amount.

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GNMA Fund

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

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

The fund enters into centrally cleared interest rate swaps to achieve the same objectives specified with respect to the equivalent over-the-counter swaps but with less counterparty risk because a regulated clearinghouse is the counterparty instead of the clearing broker or executing broker. The clearinghouse imposes initial margin requirements to secure the fund’s performance, and requires daily settlement of variation margin representing changes in the market value of each contract. To further mitigate counterparty risk, the fund trades with a diverse group of prequalified executing brokers; monitors the financial strength of its clearing brokers, executing brokers, and clearinghouse; and has entered into agreements with its clearing brokers and executing brokers.

During the six months ended July 31, 2019, the average amount of investments in interest rate swaps represented 6% of net assets, based on the average of notional amounts at each quarter-end during the period.

4. To Be Announced (TBA) Transactions: A TBA transaction is an agreement to buy or sell mortgage-backed securities with agreed-upon characteristics (face amount, coupon, maturity) for settlement at a future date. The fund may be a seller of TBA transactions to reduce its exposure to the mortgage-backed securities market or in order to sell mortgage-backed securities it owns under delayed-delivery arrangements. When the fund is a buyer of TBA transactions, it maintains cash or short-term investments in an amount sufficient to meet the purchase price at the settlement date of the TBA transaction. The primary risk associated with TBA transactions is that a counterparty may default on its obligations. The fund mitigates its counterparty risk by, among other things, performing a credit analysis of counterparties, allocating transactions among numerous counterparties, and monitoring its exposure to each counterparty. The fund may also enter into a Master Securities Forward Transaction Agreement (MSFTA) with certain counterparties and require them to transfer collateral as security for

67

GNMA Fund

their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. Under an MSFTA, upon a counterparty default (including bankruptcy), the fund may terminate any TBA transactions with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements.

At July 31, 2019, counterparties had deposited in segregated accounts securities with a value of $4,127,000 and cash with a value of $5,819,000 in connection with TBA transactions.

5. Mortgage Dollar Rolls: The fund enters into mortgage-dollar-roll transactions, in which the fund sells mortgage-backed securities to a dealer and simultaneously agrees to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are typically invested in high-quality short-term fixed income securities. The fund forgoes principal and interest paid on the securities sold, and is compensated by interest earned on the proceeds of the sale and by a lower price on the securities to be repurchased. The fund has also entered into mortgage-dollar-roll transactions in which the fund buys mortgage-backed securities from a dealer pursuant to a TBA transaction and simultaneously agrees to sell similar securities in the future at a predetermined price. The securities bought in mortgage-dollar-roll transactions are used to cover an open TBA sell position. The fund continues to earn interest on mortgage-backed security pools already held and receives a lower price on the securities to be sold in the future. The fund accounts for mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the fund’s portfolio turnover rate. Amounts to be received or paid in connection with open mortgage dollar rolls are included in Receivables for Investment Securities Sold or Payables for Investment Securities Purchased in the Statement of Assets and Liabilities.

6. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.

7. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2016–2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

8. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

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GNMA Fund

9. Credit Facility: 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 that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

10. Other: Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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.Wellington Management Company LLP 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 July 31, 2019, the investment advisory fee represented an effective annual rate of 0.01% 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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Assets and Liabilities. All other costs of operations payable to Vanguard are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $1,062,000, representing 0.01% of the fund’s net assets and 0.42% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

69

GNMA Fund

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 Statement of Net Assets.

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1		Level 2		Level 3
Investments	($000	)	($000	)	($000	)
U.S. Government and Agency Obligations	—		22,415,294		87,886
Asset-Backed/Commercial Mortgage-Backed Securities	—		72,116		—
Temporary Cash Investments	1,095,307		3,439,604		—
Futures Contracts—Assets1	254		—		—
Futures Contracts—Liabilities1	(3,709	)	—		—
Swap Contracts—Liabilities1	(472	)	—		—
Total	1,091,380		25,927,014		87,886

1Represents variation margin on the last day of the reporting period.

E.As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000)
Tax Cost	26,861,262
Gross Unrealized Appreciation	361,042
Gross Unrealized Depreciation	(156,217)
Net Unrealized Appreciation (Depreciation)	204,825

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $453,414,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

F.During the six-months ended July 31, 2019, the fund purchased $62,948,098,000 of investment securities and sold $61,773,807,000 of investment securities, other than temporary cash investments.

70

GNMA Fund

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

	Six Months Ended				Year Ended
	July 31, 2019				January 31, 2019
	Amount		Shares		Amount		Shares
	($000	)	(000	)	($000	)	(000	)
Investor Shares
Issued	709,155		68,116		647,412		63,535
Issued in Lieu of Cash Distributions	95,764		9,206		187,345		18,362
Redeemed	(525,526	)	(50,653	)	(1,694,282	)	(166,309	)
Net Increase (Decrease)—Investor Shares	279,393		26,669		(859,525	)	(84,412	)
Admiral Shares
Issued	2,317,826		222,333		1,687,263		165,487
Issued in Lieu of Cash Distributions	185,088		17,791		364,477		35,717
Redeemed	(1,073,162	)	(103,410	)	(3,786,833	)	(371,649	)
Net Increase (Decrease)—Admiral Shares	1,429,752		136,714		(1,735,093	)	(170,445	)

H.Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

71

Long-Term Treasury Fund

Sector Diversification

As of July 31, 2019

Treasury/Agency 100.0 %

The table reflects the fund’s market exposure. Any holdings in short-term reserves are excluded. The agency and mortgage-backed securities sectors may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government.

72

Long-Term Treasury Fund

Financial Statements (unaudited)

Statement of Net Assets

As of July 31, 2019

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.

				Face	Market
			Maturity	Amount	Value·
		Coupon	Date	($000)	($000	)
U.S. Government and Agency Obligations (97.1%)
U.S. Government Securities (95.0%)
1	United States Treasury Inflation Indexed Bonds	0.875%	1/15/29	36,000	38,474
	United States Treasury Note/Bond	4.750%	2/15/37	21,100	28,864
	United States Treasury Note/Bond	5.000%	5/15/37	18,500	26,056
	United States Treasury Note/Bond	4.375%	2/15/38	30,000	39,619
	United States Treasury Note/Bond	4.250%	5/15/39	11,000	14,376
	United States Treasury Note/Bond	4.500%	8/15/39	22,500	30,361
	United States Treasury Note/Bond	4.375%	11/15/39	33,500	44,503
	United States Treasury Note/Bond	4.625%	2/15/40	47,900	65,683
	United States Treasury Note/Bond	4.375%	5/15/40	48,750	64,853
	United States Treasury Note/Bond	3.875%	8/15/40	28,500	35,567
	United States Treasury Note/Bond	4.250%	11/15/40	43,400	56,895
	United States Treasury Note/Bond	4.750%	2/15/41	49,700	69,471
	United States Treasury Note/Bond	4.375%	5/15/41	40,000	53,369
	United States Treasury Note/Bond	3.750%	8/15/41	33,300	40,850
	United States Treasury Note/Bond	3.125%	11/15/41	21,076	23,565
	United States Treasury Note/Bond	3.125%	2/15/42	25,500	28,496
	United States Treasury Note/Bond	3.000%	5/15/42	31,600	34,582
	United States Treasury Note/Bond	2.750%	8/15/42	52,300	54,850
	United States Treasury Note/Bond	2.750%	11/15/42	76,150	79,791
	United States Treasury Note/Bond	3.125%	2/15/43	82,500	91,962
	United States Treasury Note/Bond	2.875%	5/15/43	105,911	113,209
	United States Treasury Note/Bond	3.625%	8/15/43	95,553	115,290
	United States Treasury Note/Bond	3.750%	11/15/43	116,508	143,323
	United States Treasury Note/Bond	3.625%	2/15/44	113,250	136,714
	United States Treasury Note/Bond	3.375%	5/15/44	110,500	128,284
	United States Treasury Note/Bond	3.125%	8/15/44	107,800	120,146
	United States Treasury Note/Bond	3.000%	11/15/44	98,229	107,177
	United States Treasury Note/Bond	2.500%	2/15/45	75,200	74,871
	United States Treasury Note/Bond	3.000%	5/15/45	98,007	107,057
	United States Treasury Note/Bond	2.875%	8/15/45	99,300	106,033
	United States Treasury Note/Bond	3.000%	11/15/45	84,500	92,382
	United States Treasury Note/Bond	2.500%	2/15/46	90,450	89,912
	United States Treasury Note/Bond	2.500%	5/15/46	91,723	91,150
	United States Treasury Note/Bond	2.250%	8/15/46	77,500	73,153
	United States Treasury Note/Bond	2.875%	11/15/46	79,626	85,125

73

Long-Term Treasury Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
	United States Treasury Note/Bond	3.000%	2/15/47	94,750		103,796
	United States Treasury Note/Bond	3.000%	5/15/47	95,000		103,966
	United States Treasury Note/Bond	2.750%	8/15/47	97,600		101,748
	United States Treasury Note/Bond	2.750%	11/15/47	92,750		96,707
	United States Treasury Note/Bond	3.000%	2/15/48	95,700		104,717
	United States Treasury Note/Bond	3.125%	5/15/48	104,250		116,825
	United States Treasury Note/Bond	3.000%	8/15/48	112,500		123,257
	United States Treasury Note/Bond	3.375%	11/15/48	129,300		152,008
	United States Treasury Note/Bond	3.000%	2/15/49	114,500		125,556
	United States Treasury Note/Bond	2.875%	5/15/49	67,000		71,774
						3,606,367
Agency Bonds and Notes (2.1%)
2	Fannie Mae Interest Strip	0.000%	5/15/29	4,592		3,619
2	Fannie Mae Principal Strip	0.000%	5/15/30	25,912		19,845
2	Federal Home Loan Mortgage Corp.	0.000%	12/14/29	20,000		15,540
2	Freddie Mac Coupon Strips	0.000%	3/15/28	1,771		1,444
2	Freddie Mac Coupon Strips	0.000%	9/15/28	1,000		804
2	Freddie Mac Coupon Strips	0.000%	1/15/30	15,658		12,116
2	Freddie Mac Coupon Strips	0.000%	3/15/30	12,896		9,917
	Resolution Funding Corp. Interest Strip	0.000%	4/15/28	21,802		17,763
						81,048
Conventional Mortgage-Backed Securities (0.0%)
2,3	Fannie Mae Pool	6.000%	2/1/26–11/1/28	9		10
Nonconventional Mortgage-Backed Securities (0.0%)
2,3	Freddie Mac REMICS	2.725%	5/15/46	55		56
2,3	Freddie Mac REMICS	2.775%	10/15/46	45		44
						100
Total U.S. Government and Agency Obligations (Cost $3,344,634)						3,687,525
				Shares
Temporary Cash Investment (2.3%)
Money Market Fund (2.3%)
4	Vanguard Market Liquidity Fund
	(Cost $87,714)	2.386%		877,078		87,716
Total Investments (99.4%) (Cost $3,432,348)						3,775,241

74

Long-Term Treasury Fund

	Amount
	($000)
Other Assets and Liabilities (0.6%)
Other Assets
Investment in Vanguard	179
Receivables for Accrued Income	34,024
Receivables for Capital Shares Issued	2,809
Variation Margin Receivable—Futures Contracts	712
Other Assets	64
Total Other Assets	37,788
Liabilities
Payables for Investment Securities Purchased	(8,784)
Payables for Capital Shares Redeemed	(4,679)
Payables for Distributions	(938)
Payables to Vanguard	(1,882)
Options Written, at Value5	(133)
Variation Margin Payable—Futures Contracts	(256)
Other Liabilities	(99)
Total Liabilities	(16,771)
Net Assets (100%)	3,796,258
At July 31, 2019, net assets consisted of:
	Amount
	($000)
Paid-in Capital	3,504,256
Total Distributable Earnings (Loss)	292,002
Net Assets	3,796,258
Investor Shares—Net Assets
Applicable to 68,629,098 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	885,540
Net Asset Value Per Share—Investor Shares	$12.90
Admiral Shares—Net Assets
Applicable to 225,582,709 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	2,910,718
Net Asset Value Per Share—Admiral Shares	$12.90

·	See Note A in Notes to Financial Statements.
1	Securities with a value of $2,898,000 have been segregated as initial margin for open futures contracts.
2	The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.
3	The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.
4	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
5	Includes premium received of $277,000.
	REMICS—Real Estate Mortgage Investment Conduits.

75

Long-Term Treasury Fund

Derivative Financial Instruments Outstanding as of Period End

Options Written

				Notional		Market
	Expiration		Exercise	Amount		Value
	Date	Contracts	Price	($000	)	($000	)
Exchange-Traded Options
Call Options
10-Year U.S. Treasury Note Futures Contracts	8/23/19	243	$129.50	31,469		(8	)
Put Options
10-Year U.S. Treasury Note Futures Contracts	8/23/19	243	$127.50	30,983		(125	)
Total Options Written (Premiums Received $277)						(133	)
Futures Contracts

					($000	)
					Value and
		Number of			Unrealized
		Long (Short	)	Notional	Appreciation
	Expiration	Contracts		Amount	(Depreciation	)
Long Futures Contracts
2-Year U.S. Treasury Note	September 2019	1,292		277,013	(637	)
30-Year U.S. Treasury Bond	September 2019	497		77,330	2,182
Ultra Long U.S. Treasury Bond	September 2019	115		20,420	300
					1,845
Short Futures Contracts
5-Year U.S. Treasury Note	September 2019	(238)		(27,978)	8
Ultra 10-Year U.S. Treasury Note	September 2019	(135)		(18,609)	(49	)
10-Year U.S. Treasury Note	September 2019	(62)		(7,900)	—
					(41	)
					1,804

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

76

Long-Term Treasury Fund

Statement of Operations

	Six Months Ended
	July 31, 2019
	($000)
Investment Income
Income
Interest1	52,033
Total Income	52,033
Expenses
The Vanguard Group—Note B
Investment Advisory Services	237
Management and Administrative—Investor Shares	693
Management and Administrative—Admiral Shares	1,048
Marketing and Distribution—Investor Shares	41
Marketing and Distribution—Admiral Shares	75
Custodian Fees	8
Shareholders’ Reports—Investor Shares	29
Shareholders’ Reports—Admiral Shares	15
Trustees’ Fees and Expenses	1
Total Expenses	2,147
Net Investment Income	49,886
Realized Net Gain (Loss)
Investment Securities Sold1	15,549
Futures Contracts	7,746
Purchased Options	(48)
Written Options	292
Realized Net Gain (Loss)	23,539
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	273,762
Futures Contracts	1,780
Purchased Options	4
Written Options	163
Change in Unrealized Appreciation (Depreciation)	275,709
Net Increase (Decrease) in Net Assets Resulting from Operations	349,134

1Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $395,000, ($2,000), and $1,000, respectively. Purchases and sales are for temporary cash investment purposes.

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

77

Long-Term Treasury Fund

Statement of Changes in Net Assets

	Six Months Ended		Year Ended
	July 31,		January 31,
	2019		2019
	($000	)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	49,886		97,542
Realized Net Gain (Loss)	23,539		(74,918)
Change in Unrealized Appreciation (Depreciation)	275,709		38,286
Net Increase (Decrease) in Net Assets Resulting from Operations	349,134		60,910
Distributions
Net Investment Income
Investor Shares	(11,499	)	(22,930)
Admiral Shares	(38,436	)	(74,609)
Realized Capital Gain
Investor Shares	—		—
Admiral Shares	—		—
Total Distributions	(49,935	)	(97,539)
Capital Share Transactions
Investor Shares	21,175		(78,880)
Admiral Shares	149,914		(28,926)
Net Increase (Decrease) from Capital Share Transactions	171,089		(107,806)
Total Increase (Decrease)	470,288		(144,435)
Net Assets
Beginning of Period	3,325,970		3,470,405
End of Period	3,796,258		3,325,970

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

78

Long-Term Treasury Fund

Financial Highlights

Investor Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019		2019		2018		2017		2016		2015
Net Asset Value, Beginning of Period	$11.86		$11.96		$11.79		$12.80		$14.19		$11.55
Investment Operations
Net Investment Income	.170	1	.334	1	.328	1	.332		.351		.372
Net Realized and Unrealized Gain (Loss) on Investments	1.041		(.100	)	.170		(.725	)	(1.070	)	2.833
Total from Investment Operations	1.211		.234		.498		(.393	)	(.719	)	3.205
Distributions
Dividends from Net Investment Income	(.171	)	(.334	)	(.328	)	(.332	)	(.351	)	(.372	)
Distributions from Realized Capital Gains	—		—		—		(.285	)	(.320	)	(.193	)
Total Distributions	(.171	)	(.334	)	(.328	)	(.617	)	(.671	)	(.565	)
Net Asset Value, End of Period	$12.90		$11.86		$11.96		$11.79		$12.80		$14.19
Total Return2	10.27%		2.05%		4.21%		-3.21%		-4.91%		28.47%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$886		$794		$882		$995		$1,148		$1,318
Ratio of Total Expenses to Average Net Assets	0.20%		0.20%		0.20%		0.20%		0.20%		0.20%
Ratio of Net Investment Income to Average Net Assets	2.80%		2.89%		2.70%		2.53%		2.76%		3.02%
Portfolio Turnover Rate3	69%		122%		103%4		94%		117%		59%

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

1Calculated based on average shares outstanding.

2Total 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.

3Includes 6%, 34%, 6%, 3%, 36%, and 22% attributable to mortgage-dollar-roll activity.

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

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

79

Long-Term Treasury Fund

Financial Highlights

Admiral Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019		2019		2018		2017		2016		2015
Net Asset Value, Beginning of Period	$11.86		$11.96		$11.79		$12.80		$14.19		$11.55
Investment Operations
Net Investment Income	.176	1	.346	1	.340	1	.345		.363		.384
Net Realized and Unrealized Gain (Loss) on Investments	1.041		(.100	)	.170		(.725	)	(1.070	)	2.833
Total from Investment Operations	1.217		.246		.510		(.380	)	(.707	)	3.217
Distributions
Dividends from Net Investment Income	(.177	)	(.346	)	(.340)		(.345	)	(.363	)	(.384	)
Distributions from Realized Capital Gains	—		—		—		(.285	)	(.320	)	(.193	)
Total Distributions	(.177	)	(.346	)	(.340)		(.630	)	(.683	)	(.577	)
Net Asset Value, End of Period	$12.90		$11.86		$11.96		$11.79		$12.80		$14.19
Total Return2	10.32%		2.16%		4.32%		-3.12%		-4.81%		28.60%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$2,911		$2,532		$2,588		$2,509		$2,400		$2,448
Ratio of Total Expenses to Average Net Assets	0.10%		0.10%		0.10%		0.10%		0.10%		0.10%
Ratio of Net Investment Income to Average Net Assets	2.90%		2.99%		2.80%		2.63%		2.86%		3.12%
Portfolio Turnover Rate3	69%		122%		103%4		94%		117%		59%

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

1Calculated based on average shares outstanding.

2Total 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.

3Includes 6%, 34%, 6%, 3%, 36%, and 22% attributable to mortgage-dollar-roll activity.

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

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

80

Long-Term Treasury Fund

Notes to Financial Statements

Vanguard Long-Term Treasury 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.

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. Bonds and temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. 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 by methods deemed by the board of trustees to represent fair value.

2. Futures and Options: The fund uses futures contracts and options on futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. The primary risk associated with purchasing options is that interest rates move in such a way that the option is out-of-the-money, the position is worthless at expiration, and the fund loses the premium paid. The primary risk associated with writing options is that interest rates move in such a way that the option is in-the-money, the counterparty exercises the option, and the fund loses an amount equal to the market value of the option written less the premium received. Counterparty risk involving futures and exchange-traded options is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures and options on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

81

Long-Term Treasury Fund

During the six months ended July 31, 2019, the fund’s average investments in long and short futures contracts represented 8% and 3% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

Options on futures contracts are also valued at their quoted daily settlement prices. The premium paid for a purchased option is recorded in the Statement of Net Assets as an asset that is subsequently adjusted daily to the current market value of the option purchased. The premium received for a written option is recorded in the Statement of Net Assets as an asset with an equal liability that is subsequently adjusted daily to the current market value of the option written. Fluctuations in the value of the options are recorded in the Statement of Operations as unrealized appreciation (depreciation) until expired, closed, or exercised, at which time realized gains (losses) are recognized.

During the six months ended July 31, 2019, the fund’s average value of investments in options purchased and options written each represented less than 1% of net assets, based on the average market values at each quarter-end during the period.

3. To Be Announced (TBA) Transactions: A TBA transaction is an agreement to buy or sell mortgage-backed securities with agreed-upon characteristics (face amount, coupon, maturity) for settlement at a future date. The fund may be a seller of TBA transactions to reduce its exposure to the mortgage-backed securities market or in order to sell mortgage-backed securities it owns under delayed-delivery arrangements. When the fund is a buyer of TBA transactions, it maintains cash or short-term investments in an amount sufficient to meet the purchase price at the settlement date of the TBA transaction. The primary risk associated with TBA transactions is that a counterparty may default on its obligations. The fund mitigates its counterparty risk by, among other things, performing a credit analysis of counterparties, allocating transactions among numerous counterparties, and monitoring its exposure to each counterparty. The fund may also enter into a Master Securities Forward Transaction Agreement (MSFTA) with certain counterparties and require them to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. Under an MSFTA, upon a counterparty default (including bankruptcy), the fund may terminate any TBA transactions with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements.

4. Mortgage Dollar Rolls: The fund enters into mortgage-dollar-roll transactions, in which the fund sells mortgage-backed securities to a dealer and simultaneously agrees to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are typically invested in high-quality short-term fixed income securities. The fund forgoes principal and interest paid on the securities sold, and is compensated by interest earned on the proceeds of the sale and by a lower price on the securities to be repurchased. The fund has also entered into mortgage-dollar-roll transactions in which the fund buys mortgage-backed securities from a dealer pursuant to a TBA transaction and simultaneously agrees to sell similar securities in the future at a predetermined price. The securities bought in mortgage-dollar-roll transactions are used to cover an open TBA sell position. The fund continues to earn interest on mortgage-backed security pools already held and receives a lower price on the securities to be sold in the future. The fund accounts for mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the fund’s portfolio turnover rate. Amounts to be received or paid in connection with open mortgage dollar rolls are included in Receivables for Investment Securities Sold or Payables for Investment Securities Purchased in the Statement of Net Assets.

82

Long-Term Treasury Fund

5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2016–2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

6. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

7. Credit Facility: 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 that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

8. Other: Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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

B.In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.

83

Long-Term Treasury Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $179,000, representing 0.00% of the fund’s net assets and 0.07% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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

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

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

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

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1	Level 2	Level 3
Investments	($000)	($000)	($000)
U.S. Government and Agency Obligations	—	3,687,525	—
Temporary Cash Investments	87,716	—	—
Options Written	(133)	—	—
Futures Contracts—Assets1	712	—	—
Futures Contracts—Liabilities1	(256)	—	—
Total	88,039	3,687,525	—

1 Represents variation margin on the last day of the reporting period.

D.As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000)
Tax Cost	3,432,773
Gross Unrealized Appreciation	344,957
Gross Unrealized Depreciation	(818)
Net Unrealized Appreciation (Depreciation)	344,139

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $75,693,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

84

Long-Term Treasury Fund

E.During the six months ended July 31, 2019, the fund purchased $1,236,335,000 of investment securities and sold $1,206,579,000 of investment securities, other than temporary cash investments.

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

	Six Months Ended				Year Ended
	July 31, 2019				January 31, 2019
	Amount		Shares		Amount		Shares
	($000	)	(000	)	($000	)	(000	)
Investor Shares
Issued	114,081		9,242		144,259		12,425
Issued in Lieu of Cash Distributions	10,739		864		21,523		1,850
Redeemed	(103,645	)	(8,426	)	(244,662	)	(21,087	)
Net Increase (Decrease)—Investor Shares	21,175		1,680		(78,880	)	(6,812	)
Admiral Shares
Issued	406,513		32,878		656,780		56,574
Issued in Lieu of Cash Distributions	33,457		2,689		64,936		5,585
Redeemed	(290,056	)	(23,556	)	(750,642	)	(64,939	)
Net Increase (Decrease)—Admiral Shares	149,914		12,011		(28,926	)	(2,780	)

G.Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

85

Trustees Approve Advisory Arrangements

The board of trustees of Vanguard Short-Term Treasury Fund, Vanguard Intermediate-Term Treasury Fund, Vanguard Long-Term Treasury Fund, and Vanguard Short-Term Federal Fund has renewed each fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), through its Fixed Income Group. The board also has renewed the investment advisory agreement between Vanguard GNMA Fund and Wellington Management Company LLP (Wellington Management). The board determined that renewing each fund’s advisory arrangement was in the best interests of the fund and its shareholders.

The board based its decisions upon an evaluation of each 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 advisors 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 monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.

Prior to their meeting, the trustees were provided with a memo and materials that summarized the information they received over the course of the year. They also considered the factors discussed below, among others. However, no single factor determined whether the board approved the arrangements. 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 each fund’s investment management services over both the short and long term and took into account the organizational depth and stability of each advisor. The board considered the following:

Vanguard. Vanguard has been managing investments for more than four decades and has advised the Short-Term Treasury, Intermediate-Term Treasury, Long-Term Treasury, and Short-Term Federal Funds since their inceptions. The Fixed Income Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth.

Wellington Management. Founded in 1928, Wellington Management is among the nation’s oldest and most respected institutional investment managers. The portfolio manager is backed by a team of experienced analysts who help inform his strategic perspective and conduct statistical and cash-flow analysis. The team leverages its deep knowledge of the mortgage industry to analyze the relative value of various GNMA bonds and construct a portfolio with lower prepayment and extension risk than the benchmark, but with similar interest rate risk. Wellington Management has advised the GNMA Fund since its inception in 1980.

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

86

Investment performance

The board considered the short- and long-term performance of each 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 arrangements should continue.

Cost

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

The board did not consider the profitability of Wellington Management in determining whether to approve the advisory fee for the GNMA Fund, because Wellington Management is independent of Vanguard and the advisory fee is the result of arm’s-length negotiations. The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.

The benefit of economies of scale

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

The board also concluded that the Short-Term Treasury, Intermediate-Term Treasury, Long-Term Treasury, and Short-Term Federal Funds’ arrangements with Vanguard ensure that the funds will realize economies of scale as they grow, with the cost to shareholders declining as fund assets increase.

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

87

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P.O. Box 2600

Valley Forge, PA 19482-2600

Connect with Vanguard® > vanguard.com

Fund Information > 800-662-7447

Direct Investor Account Services > 800-662-2739

Institutional Investor Services > 800-523-1036

Text Telephone for People

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, sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or sec.gov.

You can review 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.

© 2019 The Vanguard Group, Inc.

All rights reserved.

Vanguard Marketing Corporation, Distributor.

Q322 092019

Semiannual Report  |  July 31, 2019

Vanguard Corporate Bond Funds

Vanguard Short-Term Investment-Grade Fund

Vanguard Intermediate-Term Investment-Grade Fund

Vanguard Long-Term Investment-Grade Fund

See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.

Important information about access to shareholder reports

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.

If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.

You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.

Contents
About Your Fund’s Expenses	1
Short-Term Investment-Grade Fund	3
Intermediate-Term Investment-Grade Fund	39
Long-Term Investment-Grade Fund	74
Trustees Approve Advisory Arrangements	101

About Your Fund’s Expenses

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

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

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

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

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

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

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

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

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

1

Six Months Ended July 31, 2019
	Beginning	Ending	Expenses
	Account Value	Account Value	Paid During
	1/31/2019	7/31/2019	Period
Based on Actual Fund Return
Short-Term Investment-Grade Fund
Investor Shares	$1,000.00	$1,033.95	$1.01
Admiral™ Shares	1,000.00	1,034.46	0.50
Institutional Shares	1,000.00	1,034.61	0.35
Intermediate-Term Investment-Grade Fund
Investor Shares	$1,000.00	$1,060.90	$1.02
Admiral Shares	1,000.00	1,061.42	0.51
Long-Term Investment-Grade Fund
Investor Shares	$1,000.00	$1,121.82	$1.16
Admiral Shares	1,000.00	1,122.36	0.63
Based on Hypothetical 5% Yearly Return
Short-Term Investment-Grade Fund
Investor Shares	$1,000.00	$1,023.80	$1.00
Admiral Shares	1,000.00	1,024.30	0.50
Institutional Shares	1,000.00	1,024.45	0.35
Intermediate-Term Investment-Grade Fund
Investor Shares	$1,000.00	$1,023.80	$1.00
Admiral Shares	1,000.00	1,024.30	0.50
Long-Term Investment-Grade Fund
Investor Shares	$1,000.00	$1,023.70	$1.10
Admiral Shares	1,000.00	1,024.20	0.60

The calculations are based on expenses incurred in the most recent six-month period. The funds’ annualized six-month expense ratios for that period are: for the Short-Term Investment-Grade Fund, 0.20% for Investor Shares, 0.10% for Admiral Shares, and 0.07% for Institutional Shares; for the Intermediate-Term Investment-Grade Fund, 0.20% for Investor Shares and 0.10% for Admiral Shares; for the Long-Term Investment-Grade Fund, 0.22% for Investor Shares and 0.12% for Admiral Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (181/365).

2

Short-Term Investment-Grade Fund

Sector Diversification

As of July 31, 2019

Asset-Backed/Commercial
Mortgage-Backed	25.0%
Finance	26.7
Foreign	6.4
Government Mortgage-Backed	0.2
Industrial	29.6
Treasury/Agency	7.4
Utilities	4.6
Other	0.1

The table reflects the fund’s market exposure. Any holdings in short-term reserves are excluded. The agency and mortgage-backed securities sectors may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government.

3

Short-Term Investment-Grade Fund

Financial Statements (unaudited)

Statement of Net Assets — Investments Summary

As of July 31, 2019

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

The fund 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.

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
U.S. Government and Agency Obligations
U.S. Government Securities
	United States Treasury Inflation Indexed Bonds	0.125%	4/15/22	1,500,000		1,563,497		2.6%
	United States Treasury Inflation Indexed Bonds	0.125%	7/15/22	550,000		609,049		1.0%
1,2	United States Treasury Inflation Indexed Bonds	0.125%	1/15/22	425,000		476,518		0.8%
	United States Treasury Inflation Indexed Bonds	1.125%	1/15/21	130,000		152,736		0.2%
	United States Treasury Inflation Indexed Bonds	0.125%	4/15/21	100,000		106,753		0.2%
1,3	United States Treasury Note/Bond	1.875%	7/31/22	1,253,000		1,254,178		2.1%
1,3	United States Treasury Note/Bond	0.875%–2.875%	9/15/19–8/15/28	197,740		198,172		0.3%
						4,360,903		7.2%
Conventional Mortgage-Backed Securities †						41,072		0.1%
Nonconventional Mortgage-Backed Securities †						61,567		0.1%
Total U.S. Government and Agency Obligations (Cost $4,443,143)						4,463,542		7.4%
Asset-Backed/Commercial Mortgage-Backed Securities
4	AmeriCredit Automobile Receivables Trust 2016-1	3.590%	2/8/22	6,939		7,008		0.0%
4	AmeriCredit Automobile Receivables Trust 2016-2	3.650%	5/9/22	9,390		9,503		0.0%
4	AmeriCredit Automobile Receivables Trust 2016-3	2.710%	9/8/22	10,170		10,213		0.0%
4	AmeriCredit Automobile Receivables Trust 2018-2	4.010%	7/18/24	19,450		20,126		0.0%
4	AmeriCredit Automobile Receivables Trust 2019-1	3.620%	3/18/25	21,420		21,972		0.0%

4

Short-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4	Banc of America Commercial Mortgage Trust 2015-UBS7	3.429%–4.361%	9/15/48	19,420		20,486		0.0%
4	Banc of America Commercial Mortgage Trust 2017-BNK3	3.574%	2/15/50	4,760		5,064		0.0%
4	Banc of America Funding 2006-H Trust	4.384%	9/20/46	8,443		7,724		0.0%
4	Bank of America Mortgage Trust 2002-J	4.923%	9/25/32	16		16		0.0%
4,5	Chrysler Capital Auto Receivables Trust 2015-BA	3.260%–4.170%	4/15/21–1/16/23	21,139		21,207		0.0%
4,5	Chrysler Capital Auto Receivables Trust 2016-AA	2.880%–4.220%	6/15/22–2/15/23	29,654		29,908		0.1%
4,5	Chrysler Capital Auto Receivables Trust 2016-BA	1.640%–1.870%	7/15/21–2/15/22	7,419		7,398		0.0%
4	Citibank Credit Card Issuance Trust 2018-A1	2.490%	1/20/23	89,125		89,619		0.2%
4	Citigroup Mortgage Loan Trust 2007-AR8	4.514%	7/25/37	530		513		0.0%
4	COMM 2012-CCRE2 Mortgage Trust	3.147%–3.791%	8/15/45	7,025		7,218		0.0%
4,5	COMM 2012-CCRE3 Mortgage Trust	2.822%–3.416%	10/15/45	35,214		35,770		0.1%
4	COMM 2012-CCRE4 Mortgage Trust	2.853%–3.251%	10/15/45	12,961		13,135		0.0%
4	COMM 2012-CCRE5 Mortgage Trust	2.771%	12/10/45	2,640		2,676		0.0%
4	COMM 2013-CCRE10 Mortgage Trust	3.795%	8/10/46	7,868		8,114		0.0%
4	COMM 2013-CCRE11 Mortgage Trust	3.983%–4.258%	8/10/50	57,292		61,375		0.1%
4	COMM 2013-CCRE12 Mortgage Trust	3.623%–4.046%	10/10/46	62,188		65,544		0.1%
4	COMM 2013-CCRE13 Mortgage Trust	4.194%–4.898%	11/10/46	45,447		48,717		0.1%
4,5	COMM 2013-CCRE6 Mortgage Trust	3.147%–3.397%	3/10/46	19,740		20,131		0.0%
4	COMM 2013-CCRE8 Mortgage Trust	3.334%–3.612%	6/10/46	42,250		44,133		0.1%
4,5	COMM 2013-CCRE9 Mortgage Trust	4.232%–4.255%	7/10/45	36,609		37,961		0.1%
4,5	COMM 2013-LC13 Mortgage Trust	3.774%–4.557%	8/10/46	41,227		43,762		0.1%
4	COMM 2013-LC6 Mortgage Trust	2.941%	1/10/46	4,100		4,179		0.0%
4,5	COMM 2013-SFS Mortgage Trust	2.987%	4/12/35	5,490		5,557		0.0%
4,5	COMM 2014-277P Mortgage Trust	3.611%	8/10/49	33,245		35,228		0.1%

5

Short-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4	COMM 2014-CCRE14 Mortgage Trust	3.955%–4.236%	2/10/47	20,910		22,452		0.0%
4	COMM 2014-CCRE15 Mortgage Trust	2.928%–4.426%	2/10/47	38,656		40,995		0.1%
4	COMM 2014-CCRE17 Mortgage Trust	3.700%–4.786%	5/10/47	86,756		92,528		0.2%
4	COMM 2014-CCRE18 Mortgage Trust	3.550%–3.828%	7/15/47	38,124		40,373		0.1%
4	COMM 2014-CCRE20 Mortgage Trust	3.326%–3.590%	11/10/47	38,105		40,164		0.1%
4	COMM 2014-CCRE21 Mortgage Trust	3.528%	12/10/47	36,503		38,197		0.1%
4	COMM 2014-LC17 Mortgage Trust	3.917%	10/10/47	11,570		12,380		0.0%
4	COMM 2015-CCRE22 Mortgage Trust	3.309%	3/10/48	36,015		37,560		0.1%
4	COMM 2015-CCRE24 Mortgage Trust	3.696%	8/10/48	11,345		12,084		0.0%
4	COMM 2015-CCRE25 Mortgage Trust	3.759%	8/10/48	38,840		41,467		0.1%
4	COMM 2015-CCRE26 Mortgage Trust	3.630%	10/10/48	22,007		23,351		0.0%
4	COMM 2015-CCRE27 Mortgage Trust	3.612%–4.471%	10/10/48	20,092		21,297		0.0%
4	COMM 2015-LC19 Mortgage Trust	3.183%	2/10/48	9,930		10,287		0.0%
4,5	Drive Auto Receivables Trust 2015-BA	3.840%	7/15/21	2,849		2,854		0.0%
4,5	Drive Auto Receivables Trust 2015-CA	4.200%	9/15/21	4,789		4,800		0.0%
4,5	Drive Auto Receivables Trust 2015-DA	4.590%	1/17/23	20,225		20,412		0.0%
4,5	Drive Auto Receivables Trust 2016-BA	4.530%	8/15/23	20,835		21,096		0.0%
4,5	Drive Auto Receivables Trust 2016-C	4.180%	3/15/24	23,090		23,480		0.0%
4	Drive Auto Receivables Trust 2017-1	3.840%	3/15/23	2,400		2,425		0.0%
4	Drive Auto Receivables Trust 2017-3	2.800%	7/15/22	6,308		6,316		0.0%
4	Drive Auto Receivables Trust 2018-2	3.220%–4.140%	4/15/22–8/15/24	63,465		64,173		0.1%
4	Drive Auto Receivables Trust 2018-3	3.370%–4.300%	9/15/22–9/16/24	77,380		78,284		0.1%
4	Drive Auto Receivables Trust 2018-5	3.680%–4.300%	7/15/23–4/15/26	65,920		67,735		0.1%
4	Drive Auto Receivables Trust 2019-2	3.040%–3.690%	3/15/23–8/17/26	32,270		32,808		0.1%
4,5	GMF Floorplan Owner Revolving Trust 2017-2	2.130%–2.630%	7/15/22	81,380		81,248		0.1%
4,5	GMF Floorplan Owner Revolving Trust 2018-2	3.130%	3/15/23	53,560		54,298		0.1%
4,5	GMF Floorplan Owner Revolving Trust 2019-1	2.700%	4/15/24	13,920		14,032		0.0%

6

Short-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4,5	Golden Credit Card Trust 2018-1A	2.620%	1/15/23	153,710		154,622		0.3%
4,5	GS Mortgage Securities Trust 2012-ALOHA	3.551%	4/10/34	32,716		33,655		0.1%
4,5	GS Mortgage Securities Trust 2010-C2	5.180%	12/10/43	3,530		3,641		0.0%
4,5	GS Mortgage Securities Trust 2011-GC3	5.637%	3/10/44	2,280		2,370		0.0%
4,5	GS Mortgage Securities Trust 2012-BWTR	2.954%	11/5/34	36,047		36,697		0.1%
4,5	GS Mortgage Securities Trust 2012-GC6	4.948%	1/10/45	1,000		1,053		0.0%
4	GS Mortgage Securities Trust 2012-GCJ7	5.686%	5/10/45	7,150		7,543		0.0%
4,5	GS Mortgage Securities Trust 2013-GC13	4.050%–4.083%	7/10/46	28,584		30,397		0.1%
4	GS Mortgage Securities Trust 2013-GCJ12	3.135%–3.777%	6/10/46	21,310		21,934		0.0%
4	GS Mortgage Securities Trust 2013-GCJ14	3.817%–4.243%	8/10/46	78,093		82,911		0.1%
4	GS Mortgage Securities Trust 2014-GC20	3.998%–4.258%	4/10/47	42,753		45,547		0.1%
4	GS Mortgage Securities Trust 2014-GC24	3.931%–4.533%	9/10/47	86,227		89,288		0.2%
4	GS Mortgage Securities Trust 2014-GC26	3.364%–3.629%	11/10/47	66,660		70,159		0.1%
4	GS Mortgage Securities Trust 2015-GC28	3.136%–3.396%	2/10/48	74,945		77,910		0.1%
4	GS Mortgage Securities Trust 2015-GC30	3.382%	5/10/50	12,225		12,794		0.0%
4	GS Mortgage Securities Trust 2015-GC32	3.764%	7/10/48	4,636		4,951		0.0%
4	GS Mortgage Securities Trust 2015-GC34	3.506%–4.653%	10/10/48	38,812		40,968		0.1%
4	GS Mortgage Securities Trust 2016-GS3	2.850%	10/10/49	11,930		12,160		0.0%
4	GS Mortgage Securities Trust 2018-GS10	4.155%	7/10/51	18,110		20,127		0.0%
4	GS Mortgage Securities Trust 2018-GS9	3.992%	3/10/51	4,990		5,469		0.0%
4	GS Mortgage Securities Trust 2019-GC40	3.160%	7/10/52	3,920		4,061		0.0%
4	Merrill Lynch Mortgage Investors Trust MLMI Series 2003-A2	3.713%	2/25/33	551		538		0.0%
4	Merrill Lynch Mortgage Investors Trust MLMI Series 2003-A4	4.989%	7/25/33	334		331		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2012-C5	3.176%–3.792%	8/15/45	23,548		24,134		0.0%

7

Short-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4	Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6	2.858%	11/15/45	4,923		5,001		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C10	4.082%	7/15/46	31,865		33,790		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C11	3.960%–4.154%	8/15/46	32,309		34,305		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C12	3.824%–4.259%	10/15/46	10,282		10,744		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C13	4.039%	11/15/46	8,300		8,865		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7	2.918%–3.214%	2/15/46	9,340		9,516		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C9	3.102%	5/15/46	27,425		28,169		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C14	4.064%–4.384%	2/15/47	34,100		36,596		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15	3.773%–4.911%	4/15/47	61,824		65,533		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C16	3.892%–4.770%	6/15/47	83,605		88,803		0.2%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C17	3.741%–4.011%	8/15/47	39,638		41,976		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18	3.923%	10/15/47	13,400		14,318		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C19	3.326%–3.526%	12/15/47	40,570		42,286		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20	3.069%–3.249%	2/15/48	59,741		61,613		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C23	3.451%–3.719%	7/15/50	22,688		24,113		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C24	3.479%–3.732%	5/15/48	48,384		51,303		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C25	3.635%	10/15/48	7,814		8,295		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2016-C29	3.325%–4.750%	5/15/49	29,825		31,162		0.1%

8

Short-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4	Morgan Stanley Bank of America Merrill Lynch Trust 2016-C32	3.720%	12/15/49	61,107		65,402		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2017-C34	3.536%	11/15/52	19,660		20,836		0.0%
4	Morgan Stanley Capital I Trust 2012-C4	3.244%–3.773%	3/15/45	18,552		18,949		0.0%
4,5	Morgan Stanley Capital I Trust 2012-STAR	3.201%	8/5/34	17,287		17,696		0.0%
4,5	Morgan Stanley Capital I Trust 2014-150E	3.912%	9/9/32	27,955		29,703		0.1%
4,5	Morgan Stanley Capital I Trust 2014-CPT	3.350%	7/13/29	24,440		24,874		0.0%
4,5	Morgan Stanley Capital I Trust 2015-420	3.727%	10/12/50	28,871		30,231		0.1%
4	Morgan Stanley Capital I Trust 2015-UBS8	3.809%–4.587%	12/15/48	51,474		54,973		0.1%
4	Morgan Stanley Capital I Trust 2016-BNK2	3.049%	11/15/49	11,960		12,326		0.0%
4	Morgan Stanley Capital I Trust 2016-UB11	2.782%	8/15/49	34,337		34,703		0.1%
4	Morgan Stanley Capital I Trust 2016-UBS9	3.594%	3/15/49	19,710		20,884		0.0%
4	Morgan Stanley Capital I Trust 2017-HR2	3.509%–3.587%	12/15/50	12,185		12,911		0.0%
4	Morgan Stanley Capital I Trust 2018-H4	4.247%	12/15/51	4,440		4,897		0.0%
4,5	MSBAM Commercial Mortgage Securities Trust 2012-CKSV	3.277%	10/15/30	37,985		38,260		0.1%
4	Santander Drive Auto Receivables Trust 2015-3	3.490%	5/17/21	12,446		12,475		0.0%
4	Santander Drive Auto Receivables Trust 2016-2	3.390%	4/15/22	4,120		4,161		0.0%
4	Santander Drive Auto Receivables Trust 2016-3	2.460%	3/15/22	12,099		12,095		0.0%
4	Santander Drive Auto Receivables Trust 2017-3	2.760%	12/15/22	5,760		5,774		0.0%
4	Santander Drive Auto Receivables Trust 2018-1	2.320%–3.320%	8/16/21–3/15/24	53,453		53,801		0.1%
4	Santander Drive Auto Receivables Trust 2018-3	3.290%–4.070%	10/17/22–8/15/24	65,600		66,826		0.1%
4	Santander Drive Auto Receivables Trust 2018-4	3.980%	12/15/25	21,750		22,312		0.0%
4	Santander Drive Auto Receivables Trust 2018-5	4.190%	12/16/24	35,530		36,570		0.1%
4	Wells Fargo Commercial Mortgage Trust 2012-LC5	2.918%–3.539%	10/15/45	30,973		31,534		0.1%

9

Short-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4	Wells Fargo Commercial Mortgage Trust 2013-LC12	3.928%–4.285%	7/15/46	46,950		49,862		0.1%
4	Wells Fargo Commercial Mortgage Trust 2014-LC16	3.817%–4.458%	8/15/50	69,280		72,979		0.1%
4	Wells Fargo Commercial Mortgage Trust 2014-LC18	3.405%	12/15/47	29,862		31,236		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-C26	3.166%	2/15/48	29,810		30,854		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-C27	3.190%–3.451%	2/15/48	82,790		86,350		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-C29	3.637%–4.224%	6/15/48	66,613		70,563		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-C30	3.411%–4.497%	9/15/58	71,536		75,637		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-LC22	3.839%–4.543%	9/15/58	46,062		49,184		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-SG1	3.789%	9/15/48	33,065		35,291		0.1%
4	Wells Fargo Commercial Mortgage Trust 2016-BNK1	2.652%	8/15/49	23,085		23,158		0.0%
4	Wells Fargo Commercial Mortgage Trust 2016-C32	3.560%	1/15/59	34,455		36,493		0.1%
4	Wells Fargo Commercial Mortgage Trust 2016-C37	3.525%–3.794%	12/15/49	21,557		23,017		0.0%
4	Wells Fargo Commercial Mortgage Trust 2017-C38	3.453%	7/15/50	15,680		16,533		0.0%
4	Wells Fargo Commercial Mortgage Trust 2017-C39	3.157%–3.418%	9/15/50	71,030		74,833		0.1%
4	Wells Fargo Commercial Mortgage Trust 2017-C40	3.581%	10/15/50	45,250		48,165		0.1%
4	Wells Fargo Commercial Mortgage Trust 2017-C41	3.472%	11/15/50	39,807		42,113		0.1%
4	Wells Fargo Commercial Mortgage Trust 2017- C42	3.589%	12/15/50	17,855		18,996		0.0%
4	Wells Fargo Commercial Mortgage Trust 2017-RC1	3.631%	1/15/60	7,660		8,161		0.0%
4	Wells Fargo Commercial Mortgage Trust 2018-C43	4.012%–4.514%	3/15/51	60,983		66,596		0.1%
4	Wells Fargo Commercial Mortgage Trust 2018-C46	4.152%	8/15/51	28,060		31,103		0.1%
4	Wells Fargo Commercial Mortgage Trust 2018-C47	4.365%–4.442%	9/15/61	54,590		61,280		0.1%

10

Short-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4	Wells Fargo Commercial Mortgage Trust 2018-C48	4.245%	1/15/52	6,553		7,214		0.0%
4	Wells Fargo Commercial Mortgage Trust 2019-C49	3.933%–4.023%	3/15/52	26,264		28,827		0.1%
4	Wells Fargo Commercial Mortgage Trust 2019-C50	3.635%	5/15/52	10,300		10,990		0.0%
§,5	Asset-Backed/Commercial Mortgage-Backed Securities—Other †					10,219,480		16.9%
Total Asset-Backed/Commercial Mortgage-Backed Securities
(Cost $14,494,115)						14,822,109		24.5%
Corporate Bonds
Finance
	Banking
	American Express Co.	2.200%	10/30/20	158,870		158,466		0.3%
	American Express Co.	3.700%	8/3/23	128,195		133,975		0.2%
5	Banco Santander	2.500%	12/15/20	82,290		82,162		0.1%
	Banco Santander SA	2.706%	6/27/24	48,400		48,232		0.1%
4	Bank of America Corp.	2.369%	7/21/21	175,765		175,586		0.3%
4	Bank of America Corp.	2.328%	10/1/21	162,270		161,994		0.3%
4	Bank of America Corp.	2.625%–4.125%	10/19/20–7/23/24	429,014		439,169		0.7%
	Citibank NA	2.850%	2/12/21	262,150		264,541		0.4%
	Citibank NA	2.125%	10/20/20	130,030		129,826		0.2%
4,6	Citigroup Inc.	2.650%–4.044%	10/26/20–6/1/24	196,844		202,005		0.3%
	Goldman Sachs Group Inc.	2.600%	12/27/20	256,295		256,262		0.4%
	Goldman Sachs Group Inc.	2.875%	2/25/21	158,874		159,853		0.3%
	Goldman Sachs Group Inc.	2.300%	12/13/19	159,650		159,610		0.3%
4	Goldman Sachs Group Inc.	2.350%–5.750%	9/15/20–7/8/24	522,408		534,508		0.9%
7,8	Goldman Sachs Group Inc., 3M Australian Bank Bill Rate + 1.200%	2.631%	8/26/20	14,870		10,230		0.0%
7,8	Goldman Sachs Group Inc., 3M Australian Bank Bill Rate + 1.370%	2.736%	9/8/21	19,280		13,346		0.0%
	HSBC Bank USA NA	4.875%	8/24/20	23,750		24,375		0.0%
4	HSBC Holdings plc	2.650%–4.000%	5/25/21–3/11/25	609,012		620,146		1.0%
	JPMorgan Chase & Co.	2.550%	10/29/20	181,838		182,165		0.3%
4	JPMorgan Chase & Co.	3.514%	6/18/22	130,215		132,750		0.2%
4	JPMorgan Chase & Co.	2.250%–4.500%	1/23/20–12/5/24	634,031		645,624		1.1%
	Mitsubishi UFJ Financial Group Inc.	3.761%	7/26/23	194,065		202,223		0.3%
	Mitsubishi UFJ Financial Group Inc.	2.665%	7/25/22	160,733		161,252		0.3%
	Mitsubishi UFJ Financial Group Inc.	2.190%–3.535%	3/1/21–7/18/24	375,893		380,645		0.6%
5	Mitsubishi UFJ Trust & Banking Corp.	2.650%	10/19/20	30,625		30,716		0.1%
	Mizuho Bank Ltd.	2.340%	12/4/19	185,675		185,736		0.3%
	Morgan Stanley	2.625%	11/17/21	214,379		215,086		0.4%
	Morgan Stanley	3.125%	1/23/23	155,676		158,500		0.3%
4	Morgan Stanley	2.500%–5.500%	1/27/20–7/22/25	280,690		283,903		0.5%
5	MUFG Bank Ltd.	2.300%–2.850%	3/5/20–9/8/21	178,469		179,111		0.3%
	MUFG Union Bank NA	3.150%	4/1/22	115,775		117,855		0.2%

11

Short-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
	National Bank of Canada	2.200%	11/2/20	151,645		151,442		0.3%
	Royal Bank of Canada	2.150%	10/26/20	150,358		149,887		0.2%
	Santander Holdings USA Inc.	3.400%–3.700%	3/28/22–1/18/23	137,290		139,746		0.2%
4	Santander UK Group Holdings plc	3.373%–4.796%	1/5/24–11/15/24	74,457		76,241		0.1%
5	Santander UK plc	3.750%–5.000%	11/15/21–3/13/24	87,356		90,644		0.2%
	SunTrust Bank	2.800%	5/17/22	155,900		157,442		0.3%
	Toronto-Dominion Bank	3.250%	6/11/21	175,910		178,860		0.3%
5	UBS AG	2.450%	12/1/20	171,865		172,307		0.3%
	Wells Fargo & Co.	2.100%–4.600%	4/1/21–1/24/24	317,480		323,596		0.5%
7,8	Wells Fargo & Co., 3M Australian Bank Bill Rate + 1.320%	2.348%	7/27/21	23,240		16,091		0.0%
4	Wells Fargo Bank NA	3.325%	7/23/21	292,995		295,433		0.5%
	Wells Fargo Bank NA	3.625%	10/22/21	146,400		150,208		0.2%
	Wells Fargo Bank NA	2.600%–3.550%	1/15/21–8/14/23	119,890		123,008		0.2%
	Westpac Banking Corp.	2.750%	1/11/23	157,175		159,074		0.3%
§,5	Banking—Other †					5,292,098		8.7%
§	Brokerage †					150,764		0.3%
5	Finance Companies †					61,132		0.1%
	Insurance
	Coventry Health Care Inc.	5.450%	6/15/21	8,200		8,565		0.0%
5	Principal Life Global Funding II	2.204%	12/11/19	176,925		176,730		0.3%
5	Insurance—Other †					863,590		1.4%
	Real Estate Investment Trusts †					586,335		1.0%
						15,773,045		26.1%
Industrial
5	Basic Industry †					600,263		1.0%
	Capital Goods
	United Technologies Corp.	3.650%	8/16/23	276,860		289,756		0.5%
5	Capital Goods—Other †					997,812		1.6%
	Communication
	Verizon Communications Inc.	5.150%	9/15/23	164,633		182,543		0.3%
5	Communication—Other †					1,825,849		3.0%
	Consumer Cyclical
	General Motors Co.	4.875%	10/2/23	24,704		26,253		0.1%
7	General Motors Financial Co. Inc.	2.450%–5.100%	11/6/20–4/9/25	429,968		435,166		0.7%
5	Consumer Cyclical—Other †					1,525,415		2.5%
	Consumer Noncyclical
	Altria Group Inc.	3.490%	2/14/22	145,750		148,891		0.3%
5	Bristol-Myers Squibb Co.	2.600%	5/16/22	186,865		188,556		0.3%
	CVS Health Corp.	3.700%	3/9/23	314,550		324,336		0.5%
	CVS Health Corp.	3.350%	3/9/21	187,065		189,532		0.3%
	CVS Health Corp.	2.125%–3.500%	7/20/20–12/1/22	238,590		239,752		0.4%
	GlaxoSmithKline Capital plc	2.875%	6/1/22	249,700		253,168		0.4%
9	Medtronic Global Holdings SCA	0.000%	3/7/21	126,280		140,130		0.2%
5	Takeda Pharmaceutical Co. Ltd.	4.000%	11/26/21	145,870		150,434		0.3%
5	Consumer Noncyclical—Other †					3,241,443		5.4%
	Energy
	TransCanada PipeLines Ltd.	2.125%	11/15/19	133,475		133,287		0.2%
5	Energy—Other †					3,281,822		5.4%
5	Other Industrial †					94,767		0.2%

12

Short-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
	Technology
5	Dell International LLC / EMC Corp.	4.420%	6/15/21	131,237		135,109		0.2%
	International Business Machines Corp.	2.850%	5/13/22	171,510		173,824		0.3%
§,5	Technology—Other †					1,752,642		2.9%
5	Transportation †					1,197,016		2.0%
						17,527,766		29.0%
Utilities
	Electric
5,8	Dominion Energy Inc., 3M USD LIBOR + 0.400%	2.920%	12/1/20	195,160		195,281		0.3%
	Duke Energy Corp.	3.227%	3/11/22	290,625		299,457		0.5%
	NextEra Energy Capital Holdings Inc.	3.300%	8/15/22	354,630		361,499		0.6%
5	Electric—Other †					1,770,983		2.9%
5	Natural Gas †					109,100		0.2%
	Other Utility †					2,257		0.0%
						2,738,577		4.5%
Total Corporate Bonds (Cost $35,613,893)						36,039,388		59.6%
Sovereign Bonds
5,9	Kingdom of Spain	2.700%	10/31/48	117,150		174,985		0.3%
	Petroleos Mexicanos	5.500%	1/21/21	224,619		229,707		0.4%
5	Province of Alberta	1.750%	8/26/20	149,451		148,810		0.2%
	Republic of Lithuania	7.375%	2/11/20	144,433		148,078		0.2%
5	Sovereign Bonds—Other †					3,089,497		5.1%
Total Sovereign Bonds (Cost $3,743,774)						3,791,077		6.2%
Taxable Municipal Bonds (Cost $30,561) †						30,585		0.1%
§Convertible Preferred Stocks (Cost $28,924) †						—		0.0%
				Shares
Temporary Cash Investments
Money Market Fund
10	Vanguard Market Liquidity Fund	2.386%		3,789,269		378,965		0.6%
				Face
				Amount
				($000	)
Certificate of Deposit
	Cooperatieve Rabobank UA	1.980%	10/25/19	215,345		215,186		0.4%
11Commercial Paper †						429,765		0.7%
Total Temporary Cash Investments (Cost $1,024,072)						1,023,916		1.7%

13

Short-Term Investment-Grade Fund

					Notional
					Amount on
					Underlying		Market		Percentage
			Expiration	Exercise	Swap		Value·		of Net
		Counterparty	Date	Rate	($000	)	($000	)	Assets
Options Purchased
Over-the-Counter Swaptions
Call Swaptions
	10-Year Interest Rate Swap, Pays 3M LIBOR Quarterly, Receives 1.941% Semiannually	BNPSW	10/2/19	1.941%	62,680		533		0.0%
	5-Year Interest Rate Swap, Pays 3M LIBOR Quarterly, Receives 1.857% Semiannually	DBAG	6/21/21	1.857%	125,360		2,154		0.0%
	10-Year Interest Rate Swap, Pays 3M LIBOR Quarterly, Receives 1.916% Semiannually	GSCM	10/3/19	1.916%	156,700		1,184		0.0%
	10-Year Interest Rate Swap, Pays 3M LIBOR Quarterly, Receives 2.035% Semiannually	JPMC	10/17/19	2.035%	62,680		895		0.0%
							4,766		0.0%
Put Swaptions
	10-Year Interest Rate Swap, Receives 3M LIBOR Quarterly, Pays 1.941% Semiannually	BNPSW	10/2/19	1.941%	62,680		569		0.0%
	1-Year Interest Rate Swap, Receives 3M LIBOR Quarterly, Pays 2.260% Semiannually	CITNA	8/23/19	2.260%	629,270		53		0.0%
	5-Year Interest Rate Swap, Receives 3M LIBOR Quarterly, Pays 1.857% Semiannually	DBAG	6/21/21	1.857%	125,360		1,932		0.0%
	10-Year Interest Rate Swap, Receives 3M LIBOR Quarterly, Pays 1.916% Semiannually	GSCM	10/3/19	1.916%	156,700		1,633		0.0%
	10-Year Interest Rate Swap, Receives 3M LIBOR Quarterly, Pays 2.035% Semiannually	JPMC	10/17/19	2.035%	62,680		393		0.0%
	5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	BARC	8/21/19	0.600%	125,615		66		0.0%
	5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	JPMC	9/18/19	0.700%	251,340		123		0.0%
							4,769		0.0%
Total Options Purchased (Cost $12,141)							9,535		0.0%
Total Investments (Cost $59,390,623)							60,180,152		99.5%

14

Short-Term Investment-Grade Fund

			Percentage
	Amount		of Net
	($000	)	Assets
Other Assets and Liabilities
Other Assets
Investment in Vanguard	2,883
Receivables for Investment Securities Sold	210,975
Receivables for Accrued Income	382,795
Receivables for Capital Shares Issued	62,636
Variation Margin Receivable—Futures Contracts	1,395
Variation Margin Receivable—CC Swap Contracts	2,528
Unrealized Appreciation—Forward Currency Contracts	28,099
Unrealized Appreciation—OTC Swap Contracts	2,519
Other Assets	19,590
Total Other Assets	713,420		1.2%
Liabilities
Payables for Investment Securities Purchased	(260,477	)
Payables for Capital Shares Redeemed	(64,552	)
Payables for Distributions	(23,374	)
Payables to Vanguard	(17,294	)
Variation Margin Payable—Futures Contracts	(14,796	)
Variation Margin Payable—CC Swap Contracts	(805	)
Unrealized Depreciation—Forward Currency Contracts	(211	)
Unrealized Depreciation—OTC Swap Contracts	(10,922	)
Options Written, at Value12	(6,587	)
Other Liabilities	(20	)
Total Liabilities	(399,038	)	(0.7%)
Net Assets	60,494,534		100.0%
At July 31, 2019, net assets consisted of:
			Amount
			($000)
Paid-in Capital			60,428,919
Total Distributable Earnings (Loss)			65,615
Net Assets			60,494,534
Investor Shares—Net Assets
Applicable to 747,233,972 outstanding $.001 par value shares of beneficial interest (unlimited authorization)			7,992,319
Net Asset Value Per Share—Investor Shares			$10.70
Admiral Shares—Net Assets
Applicable to 3,942,837,712 outstanding $.001 par value shares of beneficial interest (unlimited authorization)			42,172,088
Net Asset Value Per Share—Admiral Shares			$10.70

15

Short-Term Investment-Grade Fund

	Amount
	($000)
Institutional Shares—Net Assets
Applicable to 965,804,822 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	10,330,127
Net Asset Value Per Share—Institutional Shares	$10.70

·See Note A in Notes to Financial Statements.

§Certain of the fund’s securities are valued using significant unobservable inputs.

†Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets.

1Securities with a value of $5,576,000 have been segregated as collateral for open forward currency contracts and open over-the-counter swap contracts.

2Securities with a value of $26,409,000 have been segregated as initial margin for open centrally cleared swap contracts.

3Securities with a value of $32,207,000 have been segregated as initial margin for open futures contracts.

4The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.

5Certain of the fund’s securities are 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 July 31, 2019, the aggregate value of these securities was $11,870,080,000, representing 19.6% of net assets.

6Face amount denominated in British pounds.

7Face amount denominated in Australian dollars.

8Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.

9Face amount denominated in euro.

10Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

11Certain of the fund’s securities are exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration only to dealers in that program or other “accredited investors.” At July 31, 2019, the aggregate value of these securities was $324,127,000, representing 0.5% of net assets.

12Includes premiums received of $4,763,000.

BARC—Barclays Bank plc.

BNPSW—BNP Paribas.

CC—Centrally Cleared.

CITNA—Citibank, N.A.

DBAG—Deutsche Bank AG.

GSCM—Goldman Sachs Bank USA.

JPMC—JPMorgan Chase Bank, N.A.

LIBOR—London Interbank Offered Rate.

OTC—Over-the-Counter.

16

Short-Term Investment-Grade Fund

Derivative Financial Instruments Outstanding as of Period End

Options Written

				Notional
				Amount on
				Underlying		Market
		Expiration	Exercise	Swap		Value
	Counterparty	Date	Rate	($000	)	($000)
Over-the-Counter Swaptions
Call Swaptions
30-Year Interest Rate Swap, Receives 6M EURIBOR Semiannually, Pays 0.743% Annually	BNPSW	8/1/19	0.743%	31,3401		(2,075)
10-Year Interest Rate Swap, Receives 3M LIBOR Quarterly, Pays 1.983% Semiannually	GSCM	1/30/20	1.983%	62,680		(1,064)
30-Year Interest Rate Swap, Receives 6M EURIBOR Semiannually, Pays 0.738% Annually	JPMC	8/2/19	0.738%	31,3401		(2,026)
5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	JPMC	8/21/19	0.550%	251,235		(262)
						(5,427)
Put Swaptions
30-Year Interest Rate Swap, Pays 6M EURIBOR Semiannually, Receives 0.743% Annually	BNPSW	8/1/19	0.743%	31,3401		—
10-Year Interest Rate Swap, Pays 3M LIBOR Quarterly, Receives 1.983% Semiannually	GSCM	1/30/20	1.983%	62,680		(868)
30-Year Interest Rate Swap, Pays 6M EURIBOR Semiannually, Receives 0.738% Annually	JPMC	8/2/19	0.738%	31,3401		—
5-Year CDX-NA-IG-S32-V1 Credit Protection Purchased, Pays 1.000% Quarterly	JPMC	8/21/19	0.550%	251,235		(292)
						(1,160)
Total Options Written (Premiums Received $4,763)						(6,587)

1 Notional amount denominated in euro.

BNPSW—BNP Paribas.

EURIBOR—Euro Interbank Offered Rate.

GSCM—Goldman Sachs Bank USA.

JPMC—JPMorgan Chase Bank, N.A.

17

Short-Term Investment-Grade Fund

Futures Contracts

					Value and
					Unrealized
		Number of		Notional	Appreciation
		Long (Short)		Amount	(Depreciation)
	Expiration	Contracts		(000)	($000)
Long Futures Contracts
2-Year U.S. Treasury Note	September 2019	37,501	USD	8,040,449	7,079
Long Gilt	September 2019	2,903	GBP	385,605	8,583
5-Year U.S. Treasury Note	September 2019	1,128	USD	132,602	(56)
30-Year U.S. Treasury Bond	September 2019	123	USD	19,138	96
					15,702
Short Futures Contracts
Euro-Bund	September 2019	(5,105)	EUR	(893,732)	(16,143)
Ultra 10-Year U.S. Treasury Note	September 2019	(5,868)	USD	(808,867)	(12,185)
10-Year U.S. Treasury Note	September 2019	(6,091)	USD	(776,127)	(2,196)
Euro-Bobl	September 2019	(1,376)	EUR	(185,760)	(1,608)
Euro-Schatz	September 2019	(1,230)	EUR	(138,160)	(291)
AUD 3-Year Treasury Bond	September 2019	(836)	AUD	(96,515)	(401)
Ultra Long U.S. Treasury Bond	September 2019	(398)	USD	(70,670)	(354)
AUD 10-Year Treasury Bond	September 2019	(174)	AUD	(25,269)	(356)
Euro-Buxl	September 2019	(16)	EUR	(3,344)	(126)
					(33,660)
					(17,958)

18

Short-Term Investment-Grade Fund

Forward Currency Contracts

	Contract					Unrealized		Unrealized
	Settlement	Contract Amount (000)				Appreciation		(Depreciation	)
Counterparty	Date		Receive		Deliver	($000	)	($000	)
Goldman Sachs Bank AG	8/15/19	EUR	9,270	USD	10,339	—		(64	)
Goldman Sachs Bank AG	8/15/19	GBP	2,715	USD	3,375	—		(71	)
BNP Paribas	8/15/19	GBP	2,620	USD	3,265	—		(76	)
Bank of America, N.A.	8/15/19	USD	822,351	EUR	729,057	14,253		—
Toronto-Dominion Bank	8/15/19	USD	276,885	AUD	396,565	5,535		—
Bank of America, N.A.	8/15/19	USD	207,448	GBP	165,509	6,014		—
RBC Capital Markets LLC	8/15/19	USD	82,958	MXN	1,591,276	143		—
JPMorgan Chase Bank, N.A.	8/15/19	USD	48,824	EUR	43,417	700		—
BNP Paribas	8/15/19	USD	20,478	AUD	29,065	591		—
Bank of America, N.A.	8/15/19	USD	17,839	AUD	25,296	530		—
Deutsche Bank AG	8/15/19	USD	14,714	EUR	13,088	207		—
Morgan Stanley Capital Services LLC	8/15/19	USD	9,843	EUR	8,809	79		—
Goldman Sachs Bank AG	8/15/19	USD	3,029	EUR	2,691	46		—
Goldman Sachs Bank AG	8/15/19	USD	156	JPY	16,803	1		—
						28,099		(211	)

AUD—Australian dollar.

EUR—euro.

GBP—British pound.

JPY—Japanese yen.

MXN—Mexican peso.

USD—U.S. dollar.

Centrally Cleared Credit Default Swaps

					Periodic
					Premium				Unrealized
					Received				Appreciation
	Termination	Notional Amount			(Paid	)1	Value		(Depreciation	)
Reference Entity	Date		(000	)	(%	)	($000	)	($000	)
Credit Protection Sold
CDX-NA-HY-S32-V1	6/20/24	USD	31,069		5.000		2,299		(38	)
CDX-NA-IG-S32-V1	6/20/29	USD	31,600		1.000		(68	)	221
									183
Credit Protection Purchased
CDX-NA-IG-S32-V1	6/20/22	USD	91,635		(1.000	)	(1,845	)	(12	)
CDX-NA-IG-S32-V1	6/20/24	USD	271,850		(1.000	)	(5,676	)	254
iTraxx Europe-S31-V1	6/20/24	EUR	253,220		(1.000	)	(6,894	)	(1,383	)
									(1,141	)
									(958	)

1 Periodic premium received/paid quarterly.

EUR—euro.

USD—U.S. dollar.

19

Short-Term Investment-Grade Fund

Over-the-Counter Credit Default Swaps

									Remaining
					Periodic				Up-Front
					Premium				Premium
			Notional		Received				Received		Unrealized		Unrealized
Reference	Termination		Amount		(Paid	)2	Value		(Paid	)	Appreciation		(Depreciation	)
Entity	Date	Counterparty	($000	)	(%	)	($000	)	($000	)	($000	)	($000	)
Credit Protection Sold/Moody’s Rating
Berkshire Hathaway Inc./Aa2	6/20/22	BARC	32,955		1.000		667		(325	)	342		—
Berkshire Hathaway Inc./Aa2	12/20/22	BARC	16,580		1.000		371		(192	)	179		—
Boeing Co./A2	6/20/24	GSI	72,855		1.000		1,777		(1,728	)	49		—
General Electric Capital Corp./A2	12/20/19	DBAG	29,290		1.000		97		(48	)	49		—
Metlife Inc./A3	12/20/20	GSCM	14,025		1.000		161		—		161		—
Metlife Inc./A3	12/20/21	BARC	6,575		1.000		116		(6	)	110		—
People’s Republic of China/A3	6/20/22	BNPSW	26,335		1.000		577		(132	)	445		—
People’s Republic of China/A3	12/20/23	GSI	23,085		1.000		615		(357	)	258		—
People’s Republic of China/A3	6/20/24	GSI	20,715		1.000		572		(466	)	106		—
Verizon Communications Inc./Baa1	12/20/22	GSI	33,580		1.000		680		(394	)	286		—
							5,633		(3,648	)	1,985		—
Credit Protection Purchased Aetna Inc.	12/20/19	CSFBI	19,525		(1.000	)	(74	)	51		—		(23	)
American International Group Inc.	6/20/20	BOANA	11,720		(1.000	)	(99	)	39		—		(60	)
American International Group Inc.	6/20/20	BOANA	11,720		(1.000	)	(99	)	39		—		(60	)
American International Group Inc.	12/20/20	GSCM	14,025		(1.000	)	(173	)	89		—		(84	)
American International Group Inc.	12/20/20	GSCM	6,990		(1.000	)	(86	)	(30	)	—		(116	)
Autozone Inc.	12/20/20	GSCM	9,760		(1.000	)	(128	)	97		—		(31	)
Bank of America Corp.	3/20/20	GSCM	21,610		(1.000	)	(120	)	44		—		(76	)

20

Short-Term Investment-Grade Fund

Over-the-Counter Credit Default Swaps (continued)

									Remaining
					Periodic				Up-Front
					Premium				Premium
			Notional		Received				Received		Unrealized		Unrealized
Reference	Termination		Amount		(Paid	)2	Value		(Paid	)	Appreciation		(Depreciation	)
Entity	Date	Counterparty	($000	)	(%	)	($000	)	($000	)	($000	)	($000	)
Bank of China Ltd.	12/20/21	BNPSW	13,100		(1.000	)	(251	)	(22	)	—		(273	)
Bank of China Ltd.	6/20/22	BNPSW	26,335		(1.000	)	(582	)	3		—		(579	)
Bank of China Ltd.	6/20/23	BNPSW	19,485		(1.000	)	(488	)	244		—		(244	)
Commerzbank AG	6/20/21	BOANA	24,410		(1.000	)	(352	)	(109	)	—		(461	)
CVS Health Corp.	12/20/20	BOANA	9,760		(1.000	)	(119	)	96		—		(23	)
CVS Health Corp.	12/20/20	BOANA	9,760		(1.000	)	(119	)	94		—		(25	)
CVS Health Corp.	12/20/20	BOANA	4,880		(1.000	)	(59	)	36		—		(23	)
CVS Health Corp.	12/20/20	BOANA	4,880		(1.000	)	(59	)	48		—		(11	)
CVS Health Corp.	12/20/21	BARC	19,535		(1.000	)	(357	)	311		—		(46	)
CVS Health Corp.	12/20/21	BARC	6,620		(1.000	)	(121	)	102		—		(19	)
CVS Health Corp.	12/20/21	JPMC	29,300		(1.000	)	(535	)	407		—		(128	)
Deutsche Bank AG	12/20/22	JPMC	33,535		(1.000	)	283		110		393		—
Deutsche Bank AG	6/20/24	GSI	10,6001		(1.000	)	246		(349	)	—		(103	)
Dominion Energy Inc.	12/20/20	JPMC	97,580		(1.000	)	(1,298	)	925		—		(373	)
Dominion Energy Inc.	12/20/20	JPMC	97,580		(1.000	)	(1,298	)	965		—		(333	)
Federative Republic of Brazil	12/20/25	BOANA	23,222		(1.000	)	730		(4,264	)	—		(3,534	)
Federative Republic of Brazil	12/20/25	GSCM	10,925		(1.000	)	344		(1,871	)	—		(1,527	)
LafargeHolcim Ltd.	6/20/24	BNPSW	17,570	1	(1.000	)	(392	)	76		—		(316	)
Lincoln National Corp.	6/20/21	BARC	3,340		(1.000	)	(53	)	(35	)	—		(88	)
Lincoln National Corp.	6/20/21	BARC	3,335		(1.000	)	(53	)	35		—		(18	)

21

Short-Term Investment-Grade Fund

Over-the-Counter Credit Default Swaps (continued)

									Remaining
					Periodic				Up-Front
					Premium				Premium
			Notional		Received				Received		Unrealized		Unrealized
Reference	Termination		Amount		(Paid	)2	Value		(Paid	)	Appreciation		(Depreciation	)
Entity	Date	Counterparty	($000	)	(%	)	($000	)	($000	)	($000	)	($000	)
Lincoln National Corp.	12/20/21	BARC	6,575		(1.000	)	(123	)	(8	)	—		(131	)
McDonald’s Corp.	6/20/22	GSI	26,675		(1.000	)	(704	)	494		—		(210	)
Ministry of Finance Malaysia	6/20/24	CITNA	9,710		(1.000	)	(242	)	208		—		(34	)
Ministry of Finance Malaysia	6/20/24	JPMC	3,885		(1.000	)	(97	)	83		—		(14	)
People’s Republic of China	12/20/23	BARC	13,195		(1.000	)	(367	)	291		—		(76	)
People’s Republic of China	12/20/23	BARC	9,890		(1.000	)	(275	)	211		—		(64	)
Raytheon Co.	12/20/21	GSI	24,420		(1.000	)	(558	)	430		—		(128	)
Raytheon Co.	12/20/21	GSI	24,415		(1.000	)	(557	)	425		—		(132	)
Republic of Chile	6/20/24	GSI	9,710		(1.000	)	(307	)	285		—		(22	)
Republic of Colombia	6/20/24	BARC	4,465		(1.000	)	(34	)	(25	)	—		(59	)
Republic of Colombia	6/20/24	HSBCC	18,500		(1.000	)	(141	)	34		—		(107	)
Republic of Indonesia	6/20/24	BARC	4,500		(1.000	)	(48	)	29		—		(19	)
Republic of Indonesia	6/20/24	BNPSW	6,650		(1.000	)	(70	)	42		—		(28	)
Republic of South Africa	6/20/24	DBAG	12,615		(1.000	)	410		(396	)	14		—
Republic of South Africa	6/20/24	DBAG	6,260		(1.000	)	203		(193	)	10		—
Republic of Turkey	6/20/24	BARC	16,070		(1.000	)	1,756		(1,639	)	117		—
Societe Generale SA	12/20/21	JPMC	9,765		(1.000	)	(202	)	29		—		(173	)
Societe Generale SA	6/20/24	JPMC	32,945	1	(1.000	)	(615	)	179		—		(436	)
Standard Chartered Bank	12/20/21	JPMC	16,475		(1.000	)	(330	)	(18	)	—		(348	)
State of Qatar	6/20/22	BOANA	1,500		(1.000	)	(35	)	(11	)	—		(46	)
State of Qatar	6/20/22	CITNA	3,450		(1.000	)	(80	)	(24	)	—		(104	)
United Mexican States	6/20/24	BARC	7,134		(1.000	)	47		(64	)	—		(17	)

22

Short-Term Investment-Grade Fund

Over-the-Counter Credit Default Swaps (continued)

									Remaining
					Periodic				Up-Front
					Premium				Premium
			Notional		Received				Received		Unrealized		Unrealized
Reference	Termination		Amount		(Paid	)2	Value		(Paid	)	Appreciation		(Depreciation	)
Entity	Date	Counterparty	($000	)	(%	)	($000	)	($000	)	($000	)	($000	)
United Mexican States	6/20/24	JPMC	9,700		(1.000	)	65		(67	)	—		(2	)
UnitedHealth Group Inc.	12/20/19	CSFBI	19,525		(1.000	)	(74	)	49		—		(25	)
UnitedHealth Group Inc.	6/20/20	CSFBI	19,530		(1.000	)	(170	)	133		—		(37	)
Wells Fargo & Co.	9/20/20	BOANA	25,940		(1.000	)	(258	)	122		—		(136	)
							(8,118	)	(2,270	)	534		(10,922	)
							(2,485	)	(5,918	)	2,519		(10,922	)

The notional amount represents the maximum potential amount the fund could be required to pay as a seller of credit protection if the reference entity was subject to a credit event.

1 Notional amount denominated in euro.

2 Periodic premium received/paid quarterly.

BARC—Barclays Bank plc.

BNPSW—BNP Paribas.

BOANA—Bank of America, N.A.

CITNA—Citibank, N.A.

CSFBI—Credit Suisse International.

DBAG—Deutsche Bank AG.

GSCM—Goldman Sachs Bank USA.

GSI—Goldman Sachs International.

HSBCC—HSBC Bank USA, N.A.

JPMC—JPMorgan Chase Bank, N.A.

At July 31, 2019, the counterparties had deposited in segregated accounts securities with a value of $25,598,000 and cash of $4,068,000 in connection with open forward currency contracts and over-the-counter swap contracts. After July 31, 2019, the counterparties posted additional collateral of $2,926,000 in connection with open forward currency contracts and over-the-counter swap contracts as of July 31, 2019.

23

Short-Term Investment-Grade Fund

Centrally Cleared Interest Rate Swaps

					Fixed		Floating
					Interest		Interest
					Rate		Rate				Unrealized
	Future		Notional		Received		Received				Appreciation
	Effective		Amount		(Paid	)	(Paid	)	Value		(Depreciation	)
Termination Date	Date		($000	)	(%	)	(%	)	($000	)	($000	)
9/18/20	9/18/19	1	267,973		3.000	2	(0.000	)3	2,501		(331	)
9/20/21	9/18/19	1	273,181		(1.750	)2	0.000	3	751		598
9/19/22	9/18/19	1	437,545		(1.750	)2	0.000	3	983		923
9/18/23	9/18/19	1	222,719		(1.750	)2	0.000	3	450		310
9/18/24	9/18/19	1	302,169		(2.000	)2	0.000	3	(2,815	)	(7	)
9/18/26	9/18/19	1	177,099		(3.000	)2	0.000	3	(13,371	)	(557	)
7/9/29	N/A		1,564		(1.941	)2	2.311	3	1		(1	)
11/21/29	11/21/19	1	39,017		2.392	2	(0.000	)3	1,580		916
11/26/29	11/26/19	1	34,612		(2.050	)2	0.000	3	(319	)	(320	)
8/5/49	8/5/19	1	60,173	4	0.743	5	(0.000	)6	4,171		2,341
									(6,068	)	3,872

1Forward interest rate swap. In a forward interest rate swap, the fund and the counterparty agree to make periodic net payments beginning on a specified future effective date.

2Fixed interest payment received/paid semiannually.

3Based on 3M LIBOR as of the most recent payment date. Floating interest payment received/paid quarterly.

4Notional amount denominated in euro.

5Fixed interest payment received/paid annually.

6Based on 6M EURIBOR as of the most recent payment date. Floating interest payment received/paid semiannually.

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

24

Short-Term Investment-Grade Fund

Statement of Operations

	Six Months Ended
	July 31, 2019
	($000	)
Investment Income
Income
Dividends	315
Interest1	927,824
Total Income	928,139
Expenses
The Vanguard Group—Note B
Investment Advisory Services	3,983
Management and Administrative—Investor Shares	6,857
Management and Administrative—Admiral Shares	16,124
Management and Administrative—Institutional Shares	2,628
Marketing and Distribution—Investor Shares	365
Marketing and Distribution—Admiral Shares	1,020
Marketing and Distribution—Institutional Shares	185
Custodian Fees	120
Shareholders’ Reports—Investor Shares	170
Shareholders’ Reports—Admiral Shares	390
Shareholders’ Reports—Institutional Shares	14
Trustees’ Fees and Expenses	16
Total Expenses	31,872
Net Investment Income	896,267
Realized Net Gain (Loss)
Investment Securities Sold1	134,896
Futures Contracts	(129,195	)
Options Purchased	253
Options Written	16,552
Swap Contracts	(61,989	)
Forward Currency Contracts	12,565
Foreign Currencies	12,905
Realized Net Gain (Loss)	(14,013	)
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	1,022,117
Futures Contracts	8,615
Options Purchased	(2,905	)
Options Written	(1,220	)
Swap Contracts	11,077
Forward Currency Contracts	44,891
Foreign Currencies	(469	)
Change in Unrealized Appreciation (Depreciation)	1,082,106
Net Increase (Decrease) in Net Assets Resulting from Operations	1,964,360

1Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $17,713,000, $176,000, and $5,000, respectively. Purchases and sales are for temporary cash investment purposes.

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

25

Short-Term Investment-Grade Fund

Statement of Changes in Net Assets

	Six Months Ended		Year Ended
	July 31,		January 31,
	2019		2019
	($000	)	($000	)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	896,267		1,684,700
Realized Net Gain (Loss)	(14,013	)	(577,386	)
Change in Unrealized Appreciation (Depreciation)	1,082,106		172,421
Net Increase (Decrease) in Net Assets Resulting from Operations	1,964,360		1,279,735
Distributions
Net Investment Income
Investor Shares	(115,562	)	(229,139	)
Admiral Shares	(621,181	)	(1,151,441	)
Institutional Shares	(155,608	)	(303,737	)
Realized Capital Gain
Investor Shares	—		—
Admiral Shares	—		—
Institutional Shares	—		—
Total Distributions	(892,351	)	(1,684,317	)
Capital Share Transactions
Investor Shares	2,884		(1,424,483	)
Admiral Shares	1,210,203		(1,672,327	)
Institutional Shares	45,284		(1,389,223	)
Net Increase (Decrease) from Capital Share Transactions	1,258,371		(4,486,033	)
Total Increase (Decrease)	2,330,380		(4,890,615	)
Net Assets
Beginning of Period	58,164,154		63,054,769
End of Period	60,494,534		58,164,154

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

26

Short-Term Investment-Grade Fund

Financial Highlights

Investor Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019		2019		2018		2017		2016		2015
Net Asset Value, Beginning of Period	$10.50		$10.57		$10.65		$10.60		$10.73		$10.74
Investment Operations
Net Investment Income	.155	1	.283	1	.224	1	.213		.204		.200
Net Realized and Unrealized Gain (Loss) on Investments	.200		(.069	)	(.087	)	.053		(.123	)	.016
Total from Investment Operations	.355		.214		.137		.266		.081		.216
Distributions
Dividends from Net Investment Income	(.155	)	(.284	)	(.215	)	(.205	)	(.209	)	(.200	)
Distributions from Realized Capital Gains	—		—		(.002	)	(.011	)	(.002	)	(.026	)
Total Distributions	(.155	)	(.284	)	(.217	)	(.216	)	(.211	)	(.226	)
Net Asset Value, End of Period	$10.70		$10.50		$10.57		$10.65		$10.60		$10.73
Total Return2	3.39%		2.07%		1.29%		2.52%		0.77%		2.03%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$7,992		$7,846		$9,333		$9,558		$9,840		$10,943
Ratio of Total Expenses to Average Net Assets	0.20%		0.20%		0.20%		0.20%		0.20%		0.20%
Ratio of Net Investment Income to Average Net Assets	2.95%		2.71%		2.11%		2.00%		1.91%		1.86%
Portfolio Turnover Rate	77%3		71%3		86%		68%		75%		79%

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

1Calculated based on average shares outstanding.

2Total 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.

3Includes 2% and 1% attributable to mortgage-dollar-roll activity.

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

27

Short-Term Investment-Grade Fund

Financial Highlights

Admiral Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019		2019		2018		2017		2016		2015
Net Asset Value, Beginning of Period	$10.50		$10.57		$10.65		$10.60		$10.73		$10.74
Investment Operations
Net Investment Income	.160	1	.2941		.2361		.224		.215		.211
Net Realized and Unrealized Gain (Loss) on Investments	.200		(.070	)	(.088	)	.053		(.123	)	.016
Total from Investment Operations	.360		.224		.148		.277		.092		.227
Distributions
Dividends from Net Investment Income	(.160	)	(.294	)	(.226	)	(.216	)	(.220	)	(.211	)
Distributions from Realized Capital Gains	—		—		(.002	)	(.011	)	(.002	)	(.026	)
Total Distributions	(.160	)	(.294	)	(.228	)	(.227	)	(.222	)	(.237	)
Net Asset Value, End of Period	$10.70		$10.50		$10.57		$10.65		$10.60		$10.73
Total Return2	3.45%		2.17%		1.39%		2.62%		0.87%		2.13%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$42,172		$40,218		$42,156		$38,564		$33,857		$33,772
Ratio of Total Expenses to Average Net Assets	0.10%		0.10%		0.10%		0.10%		0.10%		0.10%
Ratio of Net Investment Income to Average Net Assets	3.05%		2.81%		2.21%		2.10%		2.01%		1.96%
Portfolio Turnover Rate	77%3		71%3		86%		68%		75%		79%

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

1Calculated based on average shares outstanding.

2Total 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.

3Includes 2% and 1% attributable to mortgage-dollar-roll activity.

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

28

Short-Term Investment-Grade Fund

Financial Highlights

Institutional Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019		2019		2018		2017		2016		2015
Net Asset Value, Beginning of Period	$10.50		$10.57		$10.65		$10.60		$10.73		$10.74
Investment Operations
Net Investment Income	.162	1	.297	1	.240	1	.227		.218		.214
Net Realized and Unrealized Gain (Loss) on Investments	.199		(.070	)	(.089	)	.053		(.123	)	.016
Total from Investment Operations	.361		.227		.151		.280		.095		.230
Distributions
Dividends from Net Investment Income	(.161	)	(.297	)	(.229	)	(.219	)	(.223	)	(.214	)
Distributions from Realized Capital Gains	—		—		(.002	)	(.011	)	(.002	)	(.026	)
Total Distributions	(.161	)	(.297	)	(.231	)	(.230	)	(.225	)	(.240	)
Net Asset Value, End of Period	$10.70		$10.50		$10.57		$10.65		$10.60		$10.73
Total Return	3.46%		2.20%		1.42%		2.65%		0.90%		2.16%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$10,330		$10,100		$11,566		$9,949		$9,205		$8,337
Ratio of Total Expenses to Average Net Assets	0.07%		0.07%		0.07%		0.07%		0.07%		0.07%
Ratio of Net Investment Income to Average Net Assets	3.08%		2.84%		2.24%		2.13%		2.04%		1.99%
Portfolio Turnover Rate	77%2		71%2		86%		68%		75%		79%

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

1 Calculated based on average shares outstanding.

2 Includes 2% and 1% attributable to mortgage-dollar-roll activity.

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

29

Short-Term Investment-Grade Fund

Notes to Financial Statements

Vanguard Short-Term Investment-Grade Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. Certain of the fund’s investments are in corporate debt instruments; the issuers’ abilities to meet their obligations may be affected by economic developments in their respective industries. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. To minimize the currency risk associated with investment in securities denominated in currencies other than the U.S. dollar, the fund attempts to hedge its currency exposures. The fund offers three classes of shares: Investor Shares, Admiral Shares, and Institutional Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors.

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. Bonds and temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral. 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. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. 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.

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

3. Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The

30

Short-Term Investment-Grade Fund

primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

During the six months ended July 31, 2019, the fund’s average investments in long and short futures contracts represented 13% and 6% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any assets pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized forward currency contract gains (losses).

31

Short-Term Investment-Grade Fund

During the six months ended July 31, 2019, the fund’s average investment in forward currency contracts represented 3% of net assets, based on the average of notional amounts at each quarter-end during the period.

5. Swap Contracts: The fund invests in credit default swaps to adjust the overall credit risk of the fund or to actively overweight or underweight credit risk to a specific issuer or group of issuers. The fund may sell credit protection through credit default swaps to simulate investments in long positions that are either unavailable or considered to be less attractively priced in the bond market. The fund may purchase credit protection through credit default swaps to reduce credit exposure to a given issuer or issuers. Under the terms of the swaps, an up-front payment may be exchanged between the seller and buyer. In addition, the seller of the credit protection receives a periodic payment of premium from the buyer that is a fixed percentage applied to a notional amount. If, for example, the reference entity is subject to a credit event (such as bankruptcy, failure to pay, or obligation acceleration) during the term of the swap, the seller agrees to either physically settle or cash settle the swap contract. If the swap is physically settled, the seller agrees to pay the buyer an amount equal to the notional amount and take delivery of a debt instrument of the reference issuer with a par amount equal to such notional amount. If the swap is cash settled, the seller agrees to pay the buyer the difference between the notional amount and the final price for the relevant debt instrument, as determined either in a market auction or pursuant to a pre-agreed-upon valuation procedure.

The fund enters into interest rate swap transactions to adjust the fund’s sensitivity to changes in interest rates and maintain the ability to generate income at prevailing market rates. Under the terms of the swaps, one party pays the other an amount that is a fixed percentage rate applied to a notional amount. In return, the counterparty agrees to pay a floating rate, which is reset periodically based on short-term interest rates, applied to the same notional amount.

The notional amounts of swap contracts are not recorded in the Statement of Net Assets. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the seller of credit protection is required to take delivery (or, in a cash settled swap, pay the settlement amount determined) upon occurrence of a credit event, periodic payments are made, or the swap terminates, at which time realized gain (loss) is recorded. The net premium to be received or paid by the fund under swap contracts is accrued daily and recorded as realized gain (loss) over the life of the contract.

The primary risk associated with selling credit protection is that, upon the occurrence of a defined credit event, the market value of the debt instrument received by the fund (or, in a cash settled swap, the debt instruments used to determine the settlement payment by the fund) will be significantly less than the amount paid by the fund and, in a physically settled swap, the fund may receive an illiquid debt instrument. A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default

32

Short-Term Investment-Grade Fund

(including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

The fund enters into centrally cleared interest rate and credit default swaps to achieve the same objectives specified with respect to the equivalent over-the-counter swaps but with less counterparty risk because a regulated clearinghouse is the counterparty instead of the clearing broker or executing broker. The clearinghouse imposes initial margin requirements to secure the fund’s performance, and requires daily settlement of variation margin representing changes in the market value of each contract. To further mitigate counterparty risk, the fund trades with a diverse group of prequalified executing brokers; monitors the financial strength of its clearing brokers, executing brokers, and clearinghouse; and has entered into agreements with its clearing brokers and executing brokers.

During the six months ended July 31, 2019, the fund’s average amounts of investments in credit protection sold and credit protection purchased represented 1% and 3% of net assets, respectively, based on the average of notional amounts at each quarter-end during the period. The average amount of investments in interest rate swaps represented 3% of net assets, based on the average of notional amounts at each quarter-end during the period.

6. Options: The fund invests in options contracts on futures and swaps to adjust its exposure to the underlying investments. The primary risk associated with purchasing options is that the value of the underlying investments may move in such a way that the option is out-of-the-money (the exercise price of the option exceeds the value of the underlying investment), the position is worthless at expiration, and the fund loses the premium paid. The primary risk associated with selling options is that the value of the underlying investments may move in such a way that the option is in-the-money (the exercise price of the option exceeds the value of the underlying investment), the counterparty exercises the option, and the fund loses an amount equal to the market value of the option written less the premium received.

The fund invests in options on futures, which are exchange-traded. Counterparty risk involving exchange-traded options on futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades options on futures on an exchange, monitors the financial strength of its clearing brokers and clearinghouses, and has entered into clearing agreements with its clearing brokers.

The fund invests in options on swaps (swaptions), which are transacted over-the-counter (OTC) and not on an exchange. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return of a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. Unlike exchange-traded options, which are standardized with respect to the underlying instrument, expiration date, contract size, and strike price, the terms of OTC options generally are established through negotiation with

33

Short-Term Investment-Grade Fund

the other party to the option contract. Although this type of arrangement allows the purchaser or writer greater flexibility to tailor an option to its needs, OTC options generally involve greater credit risk than exchange-traded options. Credit risk involves the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund mitigates its counterparty risk by entering into swaptions with a diverse group of prequalified counterparties and monitoring their financial strength.

Options on futures contracts are valued at their quoted daily settlement prices. Swaptions are valued daily based on market quotations received from independent pricing services or recognized dealers. The premium paid for a purchased option is recorded in the Statement of Net Assets as an asset that is subsequently adjusted daily to the current market value of the option purchased. The premium received for a written option is recorded in the Statement of Net Assets as an asset with an equal liability that is subsequently adjusted daily to the current market value of the option written. Fluctuations in the value of the options are recorded in the Statement of Operations as unrealized appreciation (depreciation) until expired, closed, or exercised, at which time realized gains (losses) are recognized.

During the six months ended July 31, 2019, the fund’s average value of investments in options purchased and options written each represented less than 1% of net assets, based on the average market values at each quarter-end during the period.

7. To Be Announced (TBA) Transactions: A TBA transaction is an agreement to buy or sell mortgage-backed securities with agreed-upon characteristics (face amount, coupon, maturity) for settlement at a future date. The fund may be a seller of TBA transactions to reduce its exposure to the mortgage-backed securities market or in order to sell mortgage-backed securities it owns under delayed-delivery arrangements. When the fund is a buyer of TBA transactions, it maintains cash or short-term investments in an amount sufficient to meet the purchase price at the settlement date of the TBA transaction. The primary risk associated with TBA transactions is that a counterparty may default on its obligations. The fund mitigates its counterparty risk by, among other things, performing a credit analysis of counterparties, allocating transactions among numerous counterparties, and monitoring its exposure to each counterparty. The fund may also enter into a Master Securities Forward Transaction Agreement (MSFTA) with certain counterparties and require them to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. Under an MSFTA, upon a counterparty default (including bankruptcy), the fund may terminate any TBA transactions with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements.

8. Mortgage Dollar Rolls: The fund enters into mortgage-dollar-roll transactions, in which the fund sells mortgage-backed securities to a dealer and simultaneously agrees to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are typically invested in high-quality short-term fixed income securities. The fund forgoes principal and interest paid on the securities sold, and is compensated by interest earned on the proceeds of the sale and by a lower price on the securities to be repurchased. The fund accounts for mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the fund’s portfolio turnover rate. Amounts to be received or paid in connection with open mortgage dollar rolls are included in Receivables for Investment Securities Sold or Payables for Investment Securities Purchased in the Statement of Net Assets.

34

Short-Term Investment-Grade Fund

9. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2016–2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

10. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

11. Credit Facility: 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 that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

12. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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

B.In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.

35

Short-Term Investment-Grade Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $2,883,000, representing 0.00% of the fund’s net assets and 1.15% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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

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

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

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

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1		Level 2		Level 3
Investments	($000	)	($000	)	($000	)
U.S. Government and Agency Obligations	—		4,463,542		—
Asset-Backed/Commercial Mortgage-Backed Securities	—		14,667,114		154,995
Corporate Bonds	—		36,039,385		3
Sovereign Bonds	—		3,791,077		—
Taxable Municipal Bonds	—		30,585		—
Convertible Preferred Stocks	—		—		—	2
Temporary Cash Investments	378,965		644,951		—
Options Purchased	—		9,535		—
Options Written	—		(6,587	)	—
Futures Contracts—Assets1	1,395		—		—
Futures Contracts—Liabilities1	(14,796	)	—		—
Forward Currency Contracts—Assets	—		28,099		—
Forward Currency Contracts—Liabilities	—		(211	)	—
Swap Contracts—Assets	2,528	1	2,519		—
Swap Contracts—Liabilities	(805	)1	(10,922	)	—
Total	367,287		59,659,087		154,998

1 Represents variation margin on the last day of the reporting period.

2 Market value of convertible preferred stocks based on Level 3 inputs.

36

Short-Term Investment-Grade Fund

D.   At July 31, 2019, the fair values of derivatives were reflected in the Statement of Net Assets as follows:

	Interest Rate		Currency		Credit
	Contracts		Contracts		Contracts		Total
Statement of Net Assets Caption	($000	)	($000	)	($000	)	($000	)
Options Purchased	9,346		—		189		9,535
Variation Margin Receivable—Futures Contracts	1,395		—		—		1,395
Variation Margin Receivable—CC Swap Contracts	2,213		—		315		2,528
Unrealized Appreciation—Forward Currency Contracts	—		28,099		—		28,099
Unrealized Appreciation—OTC Swap Contracts	—		—		2,519		2,519
Total Assets	12,954		28,099		3,023		44,076
Options Written	(6,033	)	—		(554	)	(6,587	)
Variation Margin Payable—Futures Contracts	(14,796	)	—		—		(14,796	)
Variation Margin Payable—CC Swap Contracts	(443	)	—		(362	)	(805	)
Unrealized Depreciation—Forward Currency Contracts	—		(211	)	—		(211	)
Unrealized Depreciation—OTC Swap Contracts	—		—		(10,922	)	(10,922	)
Total Liabilities	(21,272	)	(211	)	(11,838	)	(33,321	)

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended July 31, 2019, were:

	Interest Rate		Currency		Credit
	Contracts		Contracts		Contracts		Total
Realized Net Gain (Loss) on Derivatives	($000	)	($000	)	($000	)	($000	)
Futures Contracts	(129,195	)	—		—		(129,195	)
Options Purchased	614		—		(361	)	253
Options Written	12,524		—		4,028		16,552
Swap Contracts	(58,655	)	—		(3,334	)	(61,989	)
Forward Currency Contracts	—		12,565		—		12,565
Realized Net Gain (Loss) on Derivatives	(174,712	)	12,565		333		(161,814	)
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts	8,615		—		—		8,615
Options Purchased	(2,848	)	—		(57	)	(2,905	)
Options Written	(1,872	)	—		652		(1,220	)
Swap Contracts	14,403		—		(3,326	)	11,077
Forward Currency Contracts	—		44,891		—		44,891
Change in Unrealized Appreciation (Depreciation) on Derivatives	18,298		44,891		(2,731	)	60,458

37

Short-Term Investment-Grade Fund

E.As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000	)
Tax Cost	59,343,546
Gross Unrealized Appreciation	1,059,083
Gross Unrealized Depreciation	(218,705	)
Net Unrealized Appreciation (Depreciation)	840,378

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $757,822,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

F.   During the six months ended July 31, 2019, the fund purchased $19,988,197,000 of investment securities and sold $14,992,142,000 of investment securities, other than U.S. government securities and temporary cash investments. Purchases and sales of U.S. government securities were $5,402,163,000 and $6,691,747,000, respectively.

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

	Six Months Ended				Year Ended
	July 31, 2019				January 31, 2019
	Amount		Shares		Amount		Shares
	($000	)	(000	)	($000	)	(000	)
Investor Shares
Issued	788,437		74,403		1,325,422		126,687
Issued in Lieu of Cash Distributions	107,212		10,086		206,614		19,752
Redeemed	(892,765	)	(84,211	)	(2,956,519	)	(282,593	)
Net Increase (Decrease)—Investor Shares	2,884		278		(1,424,483	)	(136,154	)
Admiral Shares
Issued	5,600,165		528,419		11,332,613		1,083,427
Issued in Lieu of Cash Distributions	495,870		46,648		920,232		87,968
Redeemed	(4,885,832	)	(460,870	)	(13,925,172	)	(1,331,637	)
Net Increase (Decrease)—Admiral Shares	1,210,203		114,197		(1,672,327	)	(160,242	)
Institutional Shares
Issued	1,217,731		114,955		3,255,614		311,004
Issued in Lieu of Cash Distributions	143,227		13,474		271,951		25,995
Redeemed	(1,315,674	)	(124,151	)	(4,916,788	)	(469,832	)
Net Increase (Decrease)—Institutional Shares	45,284		4,278		(1,389,223	)	(132,833	)

H.Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

38

Intermediate-Term Investment-Grade Fund

Sector Diversification

As of July 31, 2019

Asset-Backed/Commercial Mortgage-Backed	19.7	%
Finance	30.4
Foreign	7.1
Government Mortgage-Backed	0.1
Industrial	32.4
Treasury/Agency	5.9
Utilities	4.2
Other	0.2

The table reflects the fund’s market exposure. Any holdings in short-term reserves are excluded. The agency and mortgage-backed securities sectors may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government.

39

Intermediate-Term Investment-Grade Fund

Financial Statements (unaudited)

Statement of Net Assets—Investments Summary

As of July 31, 2019

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

The fund 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.

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
U.S. Government and Agency Obligations
U.S. Government Securities
	United States Treasury Inflation Indexed Bond	0.125%	1/15/23	565,000		622,055		2.0%
1	United States Treasury Note/Bond	2.875%	4/30/25	400,000		421,752		1.4%
	United States Treasury Note/Bond	2.625%	2/28/23	265,000		272,205		0.9%
2	United States Treasury Note/Bond	2.875%	5/15/28	200,000		214,250		0.7%
	United States Treasury Note/Bond	2.875%	5/31/25	135,000		142,404		0.4%
1,3	United States Treasury Note/Bond	2.125%–2.750%	3/31/24–2/15/28	62,152		64,455		0.2%
						1,737,121		5.6%
Conventional Mortgage-Backed Securities †						19,037		0.1%
Nonconventional Mortgage-Backed Securities †						23,372		0.1%
Total U.S. Government and Agency Obligations (Cost $1,746,467)						1,779,530		5.8%
Asset-Backed/Commercial Mortgage-Backed Securities
4,5	ARL Second LLC 2014-1A	2.920%	6/15/44	4,363		4,372		0.0%
4	Banc of America Commercial Mortgage Trust 2015-UBS7	3.429%–4.361%	9/15/48	7,626		8,046		0.0%
4	Banc of America Commercial Mortgage Trust 2017-BNK3	3.574%	2/15/50	1,540		1,638		0.0%
4,5	Chrysler Capital Auto Receivables Trust 2015-BA	3.260%–4.170%	4/15/21–1/16/23	7,493		7,517		0.0%
4,5	Chrysler Capital Auto Receivables Trust 2016-AA	2.880%–4.220%	6/15/22–2/15/23	10,234		10,317		0.0%
4,5	Chrysler Capital Auto Receivables Trust 2016-BA	1.640%–1.870%	7/15/21–2/15/22	5,412		5,395		0.0%
4,5	Drive Auto Receivables Trust 2015-BA	3.840%	7/15/21	978		979		0.0%

40

Intermediate-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4,5	Drive Auto Receivables Trust 2015-CA	4.200%	9/15/21	1,702		1,706		0.0%
4,5	Drive Auto Receivables Trust 2015-DA	4.590%	1/17/23	7,483		7,552		0.0%
4,5	Drive Auto Receivables Trust 2016-BA	4.530%	8/15/23	10,638		10,771		0.0%
4,5	Drive Auto Receivables Trust 2016-C	4.180%	3/15/24	10,540		10,718		0.0%
4	Drive Auto Receivables Trust 2017-1	3.840%	3/15/23	1,640		1,657		0.0%
4	Drive Auto Receivables Trust 2017-3	2.800%	7/15/22	3,183		3,187		0.0%
4	Drive Auto Receivables Trust 2018-2	3.220%–4.140%	4/15/22–8/15/24	26,590		26,886		0.1%
4	Drive Auto Receivables Trust 2018-3	3.370%–4.300%	9/15/22–9/16/24	38,680		39,133		0.1%
4	Drive Auto Receivables Trust 2018-5	3.680%–4.300%	7/15/23–4/15/26	33,460		34,382		0.1%
4	Drive Auto Receivables Trust 2019-2	3.040%–3.690%	3/15/23–8/17/26	11,450		11,640		0.1%
4,5	GS Mortgage Securities Corporation Trust 2012-ALOHA	3.551%	4/10/34	5,430		5,586		0.0%
4,5	GS Mortgage Securities Trust 2010-C2	5.180%	12/10/43	1,370		1,413		0.0%
4,5	GS Mortgage Securities Trust 2011-GC3	5.637%	3/10/44	2,650		2,755		0.0%
4,5	GS Mortgage Securities Trust 2012-BWTR	2.954%	11/5/34	7,625		7,762		0.0%
4,5	GS Mortgage Securities Trust 2012-GC6	4.948%	1/10/45	1,025		1,079		0.0%
4	GS Mortgage Securities Trust 2012-GCJ7	5.686%	5/10/45	2,140		2,258		0.0%
4,5	GS Mortgage Securities Trust 2013-GC13	4.050%–4.083%	7/10/46	1,395		1,454		0.0%
4	GS Mortgage Securities Trust 2013-GCJ12	3.135%–3.777%	6/10/46	5,678		5,842		0.0%
4	GS Mortgage Securities Trust 2013-GCJ14	3.817%–4.243%	8/10/46	6,761		7,101		0.0%
4	GS Mortgage Securities Trust 2014-GC20	3.998%–4.258%	4/10/47	11,208		11,939		0.1%
4	GS Mortgage Securities Trust 2014-GC24	3.931%–4.533%	9/10/47	27,220		28,321		0.1%
4	GS Mortgage Securities Trust 2014-GC26	3.364%–3.629%	11/10/47	25,550		26,887		0.1%
4	GS Mortgage Securities Trust 2015-GC28	3.136%	2/10/48	9,200		9,510		0.0%
4	GS Mortgage Securities Trust 2015-GC30	3.382%	5/10/50	2,398		2,509		0.0%
4	GS Mortgage Securities Trust 2015-GC32	3.764%	7/10/48	4,615		4,929		0.0%
4	GS Mortgage Securities Trust 2015-GC34	3.506%–4.653%	10/10/48	17,250		18,196		0.1%

41

Intermediate-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4	GS Mortgage Securities Trust 2016-GS3	2.850%	10/10/49	2,220		2,263		0.0%
4	GS Mortgage Securities Trust 2018-GS10	4.155%	7/10/51	5,335		5,929		0.0%
4	GS Mortgage Securities Trust 2019-GC40	3.160%	7/10/52	1,530		1,585		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2012-C5	3.176%–3.792%	8/15/45	24,502		25,250		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6	2.858%	11/15/45	5,382		5,467		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C10	4.082%	7/15/46	3,074		3,191		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C11	3.960%–4.154%	8/15/46	14,888		15,713		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C12	3.824%–4.259%	10/15/46	2,743		2,906		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C13	4.039%	11/15/46	400		427		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7	2.918%–3.214%	2/15/46	4,470		4,554		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C9	3.102%	5/15/46	12,980		13,332		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C14	4.064%–4.384%	2/15/47	3,900		4,181		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15	3.773%–4.911%	4/15/47	32,837		34,951		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C16	3.892%–4.770%	6/15/47	19,071		20,265		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C17	3.741%–4.011%	8/15/47	30,076		31,854		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18	3.923%	10/15/47	5,430		5,802		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C19	3.326%–3.526%	12/15/47	10,820		11,227		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20	3.069%–3.249%	2/15/48	19,093		19,660		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C23	3.451%–3.719%	7/15/50	6,710		7,090		0.0%

42

Intermediate-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C24	3.479%–3.732%	5/15/48	38,730		41,238		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C25	3.635%	10/15/48	7,598		8,066		0.0%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2016-C29	3.325%–4.750%	5/15/49	21,350		22,300		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2016-C32	3.720%	12/15/49	29,870		31,970		0.1%
4	Morgan Stanley Bank of America Merrill Lynch Trust 2017-C34	3.536%	11/15/52	6,550		6,942		0.0%
4	Morgan Stanley Capital I Trust 2012-C4	3.244%–3.773%	3/15/45	4,700		4,817		0.0%
4,5	Morgan Stanley Capital I Trust 2012-STAR	3.201%	8/5/34	6,407		6,558		0.0%
4,5	Morgan Stanley Capital I Trust 2014-150E	3.912%	9/9/32	6,370		6,768		0.0%
4,5	Morgan Stanley Capital I Trust 2014-CPT	3.350%	7/13/29	2,795		2,845		0.0%
4,5	Morgan Stanley Capital I Trust 2015-420	3.727%	10/12/50	4,430		4,639		0.0%
4	Morgan Stanley Capital I Trust 2015-UBS8	3.809%–4.587%	12/15/48	51,895		55,585		0.2%
4	Morgan Stanley Capital I Trust 2016-BNK2	3.049%	11/15/49	5,260		5,421		0.0%
4	Morgan Stanley Capital I Trust 2016-UB11	2.782%	8/15/49	31,860		32,200		0.1%
4	Morgan Stanley Capital I Trust 2016-UBS9	3.594%	3/15/49	10,670		11,306		0.1%
4	Morgan Stanley Capital I Trust 2017-HR2	3.509%–3.587%	12/15/50	6,306		6,682		0.0%
4	Morgan Stanley Capital I Trust 2018-H4	4.247%	12/15/51	6,730		7,423		0.0%
4,5	MSBAM Commercial Mortgage Securities Trust 2012-CKSV	3.277%	10/15/30	11,190		11,271		0.0%
4	Santander Drive Auto Receivables Trust 2015-3	3.490%	5/17/21	4,286		4,296		0.0%
4	Santander Drive Auto Receivables Trust 2016-2	3.390%	4/15/22	1,440		1,454		0.0%
4	Santander Drive Auto Receivables Trust 2016-3	2.460%	3/15/22	3,401		3,400		0.0%
4	Santander Drive Auto Receivables Trust 2017-3	2.760%	12/15/22	3,980		3,990		0.0%
4	Santander Drive Auto Receivables Trust 2018-1	2.320%–3.320%	8/16/21–3/15/24	14,310		14,403		0.1%
4	Santander Drive Auto Receivables Trust 2018-3	3.290%–4.070%	10/17/22–8/15/24	35,200		35,858		0.1%

43

Intermediate-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4	Santander Drive Auto Receivables Trust 2018-4	3.980%	12/15/25	11,000		11,284		0.0%
4	Santander Drive Auto Receivables Trust 2018-5	4.190%	12/16/24	17,580		18,095		0.1%
4	Wells Fargo Commercial Mortgage Trust 2012-LC5	2.918%–3.539%	10/15/45	13,462		13,787		0.1%
4	Wells Fargo Commercial Mortgage Trust 2013-LC12	3.928%–4.218%	7/15/46	8,684		9,244		0.0%
4	Wells Fargo Commercial Mortgage Trust 2014-LC16	3.548%–4.458%	8/15/50	24,970		26,202		0.1%
4	Wells Fargo Commercial Mortgage Trust 2014-LC18	3.405%	12/15/47	12,670		13,253		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-C26	3.166%	2/15/48	30,685		31,760		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-C27	3.451%	2/15/48	15,822		16,612		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-C29	3.637%–4.224%	6/15/48	18,695		19,820		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-C30	3.411%–4.497%	9/15/58	16,670		17,569		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-LC22	3.839%–4.543%	9/15/58	14,719		15,700		0.1%
4	Wells Fargo Commercial Mortgage Trust 2015-SG1	3.789%	9/15/48	22,686		24,213		0.1%
4	Wells Fargo Commercial Mortgage Trust 2016-BNK1	2.652%	8/15/49	8,950		8,978		0.0%
4	Wells Fargo Commercial Mortgage Trust 2016-C32	3.560%	1/15/59	8,870		9,395		0.0%
4	Wells Fargo Commercial Mortgage Trust 2016-C37	3.525%–3.794%	12/15/49	9,280		9,970		0.0%
4	Wells Fargo Commercial Mortgage Trust 2017-C38	3.453%	7/15/50	6,905		7,281		0.0%
4	Wells Fargo Commercial Mortgage Trust 2017-C39	3.157%–3.418%	9/15/50	22,830		24,061		0.1%
4	Wells Fargo Commercial Mortgage Trust 2017-C40	3.581%	10/15/50	15,380		16,371		0.1%

44

Intermediate-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
4	Wells Fargo Commercial Mortgage Trust 2017- C41	3.472%	11/ 15/ 50	10,700		11,320		0.1%
4	Wells Fargo Commercial Mortgage Trust 2017-C42	3.589%	12/15/50	9,345		9,942		0.0%
4	Wells Fargo Commercial Mortgage Trust 2017-RC1	3.631%	1/15/60	2,712		2,889		0.0%
4	Wells Fargo Commercial Mortgage Trust 2018-C43	4.012%–4.514%	3/15/51	17,850		19,087		0.1%
4	Wells Fargo Commercial Mortgage Trust 2018-C46	4.152%	8/15/51	8,630		9,566		0.0%
4	Wells Fargo Commercial Mortgage Trust 2018-C47	4.365%–4.442%	9/15/61	19,290		21,705		0.1%
4	Wells Fargo Commercial Mortgage Trust 2018-C48	4.245%	1/15/52	11,180		12,308		0.1%
4	Wells Fargo Commercial Mortgage Trust 2019-C49	3.933%–4.023%	3/15/52	11,650		12,791		0.1%
4	Wells Fargo Commercial Mortgage Trust 2019-C50	3.635%	5/15/52	3,710		3,958		0.0%
§,5	Asset-Backed/Commercial Mortgage-Backed Securities—Other †					4,584,310		14.9%
Total Asset-Backed/Commercial Mortgage-Backed Securities
(Cost $5,727,937)						5,849,987		19.0%
Corporate Bonds
Finance
	Banking
	Banco Santander SA	2.706%–4.379%	6/27/24–6/27/29	64,215		64,958		0.2%
4	Bank of America Corp.	3.824%	1/20/28	89,380		94,360		0.3%
4	Bank of America Corp.	3.093%	10/1/25	72,895		74,284		0.2%
4	Bank of America Corp.	3.194%–4.271%	7/23/24–7/23/30	247,060		257,610		0.8%
	Bank of Montreal	3.300%	2/5/24	76,000		78,537		0.3%
	Citigroup Inc.	3.200%	10/21/26	111,245		113,649		0.4%
	Cooperatieve Rabobank UA	4.625%	12/1/23	78,434		83,794		0.3%
	Goldman Sachs Group Inc.	3.750%	5/22/25	86,497		90,279		0.3%
4	Goldman Sachs Group Inc.	3.272%–4.223%	7/8/24–5/1/29	232,504		242,217		0.8%
6,7	Goldman Sachs Group Inc., 3M Australian Bank Bill Rate + 1.200%	2.825%	5/16/23	10,000		6,845		0.0%
6,7	Goldman Sachs Group Inc., 3M Australian Bank Bill Rate + 1.550%	3.100%	5/2/24	30,700		21,240		0.1%
4	HSBC Holdings plc	3.803%–4.583%	5/18/24–5/22/30	296,342		311,558		1.0%

45

Intermediate-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
6,7	HSBC Holdings plc, 3M Australian Bank Bill Rate + 1.100%	2.725%	2/16/24	28,200		19,223		0.1%
4	JPMorgan Chase & Co.	3.220%	3/1/25	80,536		82,702		0.3%
4,8	JPMorgan Chase & Co.	1.090%–4.005%	5/13/24–7/24/38	274,919		288,963		0.9%
	Lloyds Banking Group plc	4.550%	8/16/28	71,000		76,233		0.2%
	Mitsubishi UFJ Financial Group Inc.	3.777%	3/2/25	107,697		113,622		0.4%
	Mitsubishi UFJ Financial Group Inc.	3.761%	7/26/23	79,890		83,249		0.3%
	Mitsubishi UFJ Financial Group Inc.	3.195%	7/18/29	77,000		78,033		0.2%
	Mitsubishi UFJ Financial Group Inc.	2.527%–3.850%	9/13/23–3/7/29	122,490		127,842		0.4%
5	Mitsubishi UFJ Trust & Banking Corp.	2.650%	10/19/20	29,055		29,142		0.1%
	Morgan Stanley	3.875%	1/27/26	85,427		90,526		0.3%
4	Morgan Stanley	2.720%–4.000%	4/29/24–7/22/28	213,621		223,001		0.7%
	MUFG Americas Holdings Corp.	3.000%–3.500%	6/18/22–2/10/25	31,491		32,099		0.1%
	PNC Financial Services Group Inc.	3.450%	4/23/29	101,000		105,705		0.3%
	Santander Holdings USA Inc.	3.500%–4.400%	6/7/24–7/13/27	41,222		42,467		0.1%
5	Santander UK Group Holdings plc	4.750%	9/15/25	17,061		17,560		0.1%
	Santander UK plc	2.875%–4.000%	3/13/24–6/18/24	46,110		47,379		0.2%
	Sumitomo Mitsui Financial Group Inc.	3.040%	7/16/29	114,000		114,214		0.4%
	Sumitomo Mitsui Financial Group Inc.	2.632%–3.784%	7/12/22–1/17/28	236,960		241,216		0.8%
	SunTrust Bank	3.200%	4/1/24	120,925		124,502		0.4%
4,5	UBS Group Funding Switzerland AG	2.859%	8/15/23	82,205		82,698		0.3%
4	Wells Fargo & Co.	3.000%–4.150%	9/9/24–1/24/29	242,984		250,505		0.8%
6,7	Wells Fargo & Co., 3M Australian Bank Bill Rate + 1.100%	2.128%	4/27/22	20,610		14,219		0.0%
	Wells Fargo Bank NA	3.550%	8/14/23	72,420		75,348		0.2%
§,5	Banking—Other †					2,782,495		9.0%
§,5	Brokerage †					419,585		1.4%
	Finance Companies †					5,045		0.0%
	Insurance
	UnitedHealth Group Inc.	2.875%	8/15/29	91,740		91,875		0.3%
5	Insurance—Other †					915,653		3.0%
	Other Finance †					8,196		0.0%
5	Real Estate Investment Trusts †					976,736		3.2%
						8,999,364		29.2%
Industrial
5	Basic Industry †					305,953		1.0%
	Capital Goods
	United Technologies Corp.	3.125%	5/4/27	70,965		73,115		0.2%
5	Capital Goods—Other †					664,723		2.2%

46

Intermediate-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
	Communication
	Comcast Cable Communications Holdings Inc.	9.455%	11/15/22	9,966		12,211		0.0%
	Comcast Corp.	3.375%	8/15/25	107,848		112,563		0.4%
	Comcast Corp.	4.150%	10/15/28	66,025		72,725		0.2%
	Comcast Corp.	2.350%–3.950%	2/15/25–2/15/28	182,768		188,147		0.6%
	Verizon Communications Inc.	4.125%	3/16/27	100,000		108,265		0.4%
5	Communication—Other †					768,590		2.5%
	Consumer Cyclical
	Visa Inc.	3.150%	12/14/25	120,737		125,760		0.4%
5	Consumer Cyclical—Other †					988,427		3.2%
	Consumer Noncyclical
	Anheuser-Busch InBev Worldwide Inc.	4.750%	1/23/29	91,350		103,678		0.3%
5	Bristol-Myers Squibb Co.	3.400%	7/26/29	78,605		82,068		0.3%
5	Bristol-Myers Squibb Co.	3.200%	6/15/26	74,375		76,889		0.2%
	CVS Health Corp.	4.100%	3/25/25	74,900		78,754		0.3%
	CVS Health Corp.	4.300%	3/25/28	72,460		76,910		0.2%
	Gilead Sciences Inc.	3.700%	4/1/24	70,110		73,616		0.2%
	Medtronic Inc.	3.500%	3/15/25	74,286		78,878		0.3%
	Reynolds American Inc.	4.450%	6/12/25	87,408		92,725		0.3%
5	Consumer Noncyclical—Other †					1,656,330		5.4%
	Energy
	BP Capital Markets America Inc.	2.750%–3.796%	5/10/23–1/16/27	276,039		285,134		0.9%
	BP Capital Markets plc	3.279%–3.994%	9/26/23–9/19/27	114,103		120,221		0.4%
	ConocoPhillips Co.	4.950%	3/15/26	67,877		77,262		0.3%
	Shell International Finance BV	3.250%	5/11/25	85,903		89,874		0.3%
5	Energy—Other †					1,061,731		3.4%
	Other Industrial †					10,938		0.0%
	Technology
	Apple Inc.	3.250%	2/23/26	88,151		92,119		0.3%
	Apple Inc.	2.450%–3.450%	2/9/24–11/13/27	442,401		454,257		1.5%
	Fiserv Inc.	3.200%	7/1/26	82,520		84,347		0.3%
	International Business Machines Corp.	3.300%	5/15/26	103,665		107,593		0.4%
	International Business Machines Corp.	3.500%	5/15/29	73,015		76,400		0.2%
	Microsoft Corp.	2.400%	8/8/26	97,672		97,936		0.3%
§,5	Technology—Other †					1,013,081		3.3%
5	Transportation †					279,716		0.9%
						9,590,936		31.1%
Utilities
5	Electric †					1,192,524		3.9%
5	Natural Gas †					40,272		0.1%
	Other Utility †					12,495		0.0%
						1,245,291		4.0%
Total Corporate Bonds (Cost $19,166,432)						19,835,591		64.3%
Sovereign Bonds
	Kingdom of Saudi Arabia	2.375%	10/26/21	131,077		131,116		0.4%
5,8	Kingdom of Spain	2.700%	10/31/48	59,880		89,442		0.3%
	Petroleos Mexicanos	5.500%	1/21/21	150,939		154,358		0.5%

47

Intermediate-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
	Petroleos Mexicanos	6.500%–6.875%	8/4/26–3/13/27	41,350		41,890		0.1%
7	Petroleos Mexicanos, 3M USD LIBOR +3.650%	6.101%	3/11/22	14,150		14,273		0.0%
	Republic of Indonesia	3.750%	4/25/22	88,508		90,965		0.3%
	State of Qatar	4.000%	3/14/29	91,126		99,343		0.3%
9	United Mexican States	5.750%	3/5/26	1,890,540		90,312		0.3%
8	United Mexican States	1.625%–4.500%	1/30/25–4/22/29	52,292		56,036		0.2%
5	Sovereign Bonds—Other †					1,344,385		4.4%
Total Sovereign Bonds (Cost $2,054,303)						2,112,120		6.8%
Taxable Municipal Bonds (Cost $43,025) †						46,090		0.1%
§Convertible Preferred Stocks (Cost $8,571) †						—		0.0%
				Shares
Temporary Cash Investments
Money Market Fund
10	Vanguard Market Liquidity Fund	2.386%		5,848,449		584,903		1.9%
				Face
				Amount
				($000	)
Commercial Paper
11	Dominion Energy Inc.	2.770%	9/5/19	75,000		74,803		0.2%
11	Commercial Paper—Other †					324,224		1.1%
						399,027		1.3%
Total Temporary Cash Investments (Cost $983,936)						983,930		3.2%

					Notional
					Amount on
					Underlying
			Expiration	Exercise	Swap
		Counterparty	Date	Rate	($000	)
Options Purchased
Over-the-Counter Swaptions (0.0%)
Call Swaptions
	10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.941% Semiannually	BNPSW	10/2/19	1.941%	31,440		267	0.0%
	10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.916% Semiannually	GSCM	10/3/19	1.916%	78,600		594	0.0%

48

Intermediate-Term Investment-Grade Fund

					Notional
					Amount on
					Underlying		Market		Percentage
			Expiration	Exercise	Swap		Value·		of Net
		Counterparty	Date	Rate	($000	)	($000	)	Assets
	10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 2.035% Semiannually	JPMC	10/17/19	2.035%	31,440		449		0.0%
	5-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.857% Semiannually	DBAG	6/21/21	1.857%	62,890		1,081		0.0%
							2,391		0.0%
Put Swaptions
	1-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 2.260% Semiannually	CITNA	8/23/19	2.260%	313,000		26		0.0%
	10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.941% Semiannually	BNPSW	10/2/19	1.941%	31,440		286		0.0%
	10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.916% Semiannually	GSCM	10/3/19	1.916%	78,600		819		0.0%
	10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 2.035% Semiannually	JPMC	10/17/19	2.035%	31,440		197		0.0%
	5-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.857% Semiannually	DBAG	6/21/21	1.857%	62,890		969		0.0%
	5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	BARC	8/21/19	0.600%	63,950		33		0.0%
	5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	JPMC	9/18/19	0.700%	127,890		63		0.0%
							2,393		0.0%
Total Swaption Contracts Purchased (Cost $6,089)							4,784		0.0%
Total Investments (Cost $29,736,760)							30,612,032		99.2%

49

Intermediate-Term Investment-Grade Fund

			Percentage
	Amount		of Net
	($000	)	Assets
Other Assets and Liabilities
Other Assets
Investment in Vanguard	1,462
Receivables for Investment Securities Sold	204,495
Receivables for Accrued Income	216,307
Receivables for Capital Shares Issued	48,463
Variation Margin Receivable—Futures Contracts	3,676
Variation Margin Receivable—CC Swap Contracts	1,228
Unrealized Appreciation—Forwards Contracts	12,051
Unrealized Appreciation—OTC Swap Contracts	2,409
Other Assets	10,133
Total Other Assets	500,224		1.6%
Liabilities
Payables for Investment Securities Purchased	(189,758	)
Payables for Capital Shares Redeemed	(28,163	)
Payables for Distributions	(11,231	)
Payables to Vanguard	(10,356	)
Options Written, at Value12	(3,308	)
Variation Margin Payable—Futures Contracts	(7,259	)
Variation Margin Payable—CC Swap Contracts	(391	)
Unrealized Depreciation—Forwards Contracts	(1,720	)
Unrealized Depreciation—OTC Swap Contracts	(5,878	)
Other Liabilities	(792	)
Total Liabilities	(258,856	)	(0.8%)
Net Assets	30,853,400		100.0%
At July 31, 2019, net assets consisted of:
			Amount
			($000)
Paid-in Capital			30,168,117
Total Distributable Earnings (Loss)			685,283
Net Assets			30,853,400
Investor Shares—Net Assets
Applicable to 228,458,826 outstanding $.001 par value shares of beneficial interest (unlimited authorization)			2,271,857
Net Asset Value Per Share—Investor Shares			$9.94

50

Intermediate-Term Investment-Grade Fund

	Amount
	($000)
Admiral Shares—Net Assets
Applicable to 2,874,179,686 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	28,581,543
Net Asset Value Per Share—Admiral Shares	$9.94

·	See Note A in Notes to Financial Statements.
§	Certain of the fund’s securities are valued using significant unobservable inputs.
†	Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets.
1	Securities with a value of $14,646,000 have been segregated as initial margin for open centrally cleared swap contracts.
2	Securities with a value of $42,732,000 have been segregated as initial margin for open futures contracts.
3	Securities with a value of $1,042,000 have been segregated as collateral for open forward currency contracts and over-the-counter swap contracts.
4	The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.
5	Certain of the fund’s securities are 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 July 31, 2019, the aggregate value of these securities was $4,435,294,000, representing 14.4% of net assets.
6	Face amount denominated in Australian dollars.
7	Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.
8	Face amount denominated in euro.
9	Face amount denominated in Mexican pesos.
10	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
11	Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration only to dealers in that program or other “accredited investors.” At July 31, 2019, the aggregate value of these securities was $369,107,000, representing 1.2% of net assets.
12	Includes premiums received of $2,394,000.
	BARC—Barclays Bank plc.
	BNPSW—BNP Paribas.
	CC—Centrally Cleared.
	CITNA—Citibank, N.A.
	DBAG—Deutsche Bank AG.
	GSCM—Goldman Sachs Bank USA.
	JPMC—JPMorgan Chase Bank, N.A.
	LIBOR—London Interbank Offered Rate.
	OTC—Over-the-Counter.

51

Intermediate-Term Investment-Grade Fund

Derivative Financial Instruments Outstanding as of Period End
Options Written
				Notional
				Amount on
				Underlying			Market
		Expiration	Exercise	Swap			Value
	Counterparty	Date	Rate	(000		)	($000	)
Over-the-Counter Swaptions
Call Swaptions
30-Year Interest Rate Swap, Receives 6M EURIBOR Semiannually, Pays 0.743% Annually	BNPSW	8/1/19	0.743%	EUR	15,720		(1,041	)
30-Year Interest Rate Swap, Receives 6M EURIBOR Semiannually, Pays 0.738% Annually	JPMC	8/2/19	0.738%	EUR	15,720		(1,017	)
10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.983% Semiannually	GSCM	1/30/20	1.983%	USD	31,440		(533	)
5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	JPMC	8/21/19	0.550%	USD	127,905		(133	)
							(2,724	)
Put Swaptions
30-Year Interest Rate Swap, Pays 6M EURIBOR Semiannually, Receives 0.743% Annually	BNPSW	8/1/19	0.743%	EUR	15,720		—1
30-Year Interest Rate Swap, Pays 6M EURIBOR Semiannually, Receives 0.738% Annually	JPMC	8/2/19	0.738%	EUR	15,720		—1
10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.983% Semiannually	GSCM	1/30/20	1.983%	USD	31,440		(435	)
5-Year CDX-NA-IG-S32-V1, Credit Protection Purchased, Pays 1.000% Quarterly	JPMC	8/21/19	0.550%	USD	127,905		(149	)
							(584	)
Total Options Written (Premiums Received $2,394)							(3,308	)

1 Market value is less than $500.

BNPSW—BNP Paribas.

EUR—euro.

EURIBOR—Euro Interbank Offer Rate.

GSCM—Goldman Sachs Bank USA.

JPMC—JPMorgan Chase Bank, N.A.

USD—U.S. dollar.

52

Intermediate-Term Investment-Grade Fund

Futures Contracts

							Value and
							Unrealized
		Number of		Notional			Appreciation
		Long (Short	)	Amount			(Depreciation	)
	Expiration	Contracts		(000		)	($000	)
Long Futures Contracts
10-Year U.S. Treasury Note	September 2019	19,989		USD	2,547,036		21,864
5-Year U.S. Treasury Note	September 2019	15,869		USD	1,865,475		(2,724	)
Long Gilt	September 2019	1,476		GBP	238,425		4,388
Ultra 10-Year U.S. Treasury Note	September 2019	711		USD	98,007		(93	)
							23,435
Short Futures Contracts
Euro-Bund	September 2019	(3,119	)	EUR	(604,472	)	(9,791	)
2-Year U.S. Treasury Note	September 2019	(2,493	)	USD	(534,515	)	666
30-Year U.S. Treasury Bond	September 2019	(539	)	USD	(83,865	)	(1,248	)
Ultra Long U.S. Treasury Bond	September 2019	(419	)	USD	(74,399	)	(239	)
AUD 3-Year Treasury Bond	September 2019	(411	)	AUD	(32,448	)	(197	)
Euro-Schatz	September 2019	(243	)	EUR	(30,216	)	(68	)
AUD 10-Year Treasury Bond	September 2019	(242	)	AUD	(24,033	)	(495	)
Euro-Buxl	September 2019	(63	)	EUR	(14,575	)	(607	)
Euro-Bobl	September 2019	(38	)	EUR	(5,679	)	(21	)
							(12,000	)
							11,435

53

Intermediate-Term Investment-Grade Fund

Forward Currency Contracts

	Contract					Unrealized		Unrealized
	Settlement	Contract Amount (000)				Appreciation		(Depreciation	)
Counterparty	Date	Receive		Deliver		($000	)	($000	)
BNP Paribas	8/15/19	AUD	54,059	USD	38,089	—		(1,099	)
Bank of America, N.A.	8/15/19	AUD	25,849	USD	18,229	—		(541	)
State Street Bank & Trust Company	8/15/19	EUR	3,685	USD	4,105	—		(20	)
Goldman Sachs Bank AG	8/15/19	EUR	2,761	USD	3,080	—		(19	)
Bank of America, N.A.	8/15/19	GBP	1,442	USD	1,796	—		(41	)
Bank of America, N.A.	8/15/19	USD	301,365	EUR	267,302	5,081		—
Toronto-Dominion Bank	8/15/19	USD	243,936	AUD	349,373	4,876		—
RBC Capital Markets LLC	8/15/19	USD	88,656	MXN	1,700,568	153		—
RBC Capital Markets LLC	8/7/19	USD	56,658	ZAR	803,661	680		—
Bank of America, N.A.	8/15/19	USD	27,149	GBP	21,661	787		—
JPMorgan Chase Bank, N.A.	8/15/19	USD	24,532	EUR	21,815	352		—
BNP Paribas	8/15/19	USD	8,136	EUR	7,301	44		—
Goldman Sachs Bank AG	8/15/19	USD	2,702	EUR	2,410	31		—
Morgan Stanley Capital Services LLC	8/15/19	USD	1,413	EUR	1,264	11		—
State Street Bank & Trust Company	8/15/19	USD	1,121	GBP	894	33		—
HSBC Bank USA, N.A.	8/15/19	USD	172	EUR	154	2		—
Goldman Sachs Bank AG	8/15/19	USD	77	JPY	8,326	1		—
						12,051		(1,720	)

AUD—Australian dollar.

EUR—euro.

GBP—British pound.

JPY—Japanese yen.

MXN—Mexican peso.

USD—U.S. dollar.

ZAR—South African rand.

54

Intermediate-Term Investment-Grade Fund

Centrally Cleared Credit Default Swaps

					Periodic
					Premium			Unrealized
					Received			Appreciation
	Termination	Notional Amount			(Paid)	1	Value	(Depreciation	)
Reference Entity	Date		(000	)	(%)		($000)	($000	)
Credit Protection Sold
CDX-NA-HY-S32-V1	6/20/24	USD	15,845		5.000		1,172	(19	)
CDX-NA-IG-S32-V1	6/20/29	USD	15,875		1.000		(34)	111
							1,138	92
Credit Protection Purchased
CDX-NA-IG-S32-V1	6/20/22	USD	46,040		(1.000)		(927)	(6	)
CDX-NA-IG-S32-V1	6/20/24	USD	132,640		(1.000)		(2,770)	133
iTraxx Europe-S31-V1	6/20/24	EUR	126,815		(1.000)		(3,453)	(663	)
							(7,150)	(536	)
							(6,012)	(444	)

1Periodic premium received/paid quarterly.

EUR—euro.

USD—U.S. dollar.

55

Intermediate-Term Investment-Grade Fund

Over-the-Counter Credit Default Swaps

						Remaining
				Periodic		Up-Front
				Premium		Premium
			Notional	Received		Received	Unrealized	Unrealized
Reference	Termination		Amount	(Paid)1	Value	(Paid)	Appreciation	(Depreciation)
Entity	Date	Counterparty	($000)	(%)	($000)	($000)	($000)	($000)
Credit Protection Sold/Moody’s Rating
America Movil /A3	12/20/22	BARC	15,000	1.000	4	98	102	—
Berkshire Hathaway Inc./Aa2	6/20/22	BARC	15,760	1.000	319	(155)	164	—
Berkshire Hathaway Inc./Aa2	12/20/22	BARC	7,605	1.000	170	(88)	82	—
Berkshire Hathaway Inc./Aa2	6/20/24	BARC	19,400	1.000	489	(174)	315	—
Berkshire Hathaway Inc./Aa2	6/20/24	JPMC	9,400	1.000	237	(71)	166	—
Metlife Inc./A3	12/20/20	GSCM	5,625	1.000	65	—	65	—
Metlife Inc./A3	12/20/21	BARC	3,165	1.000	56	(3)	53	—
Metlife Inc./A3	6/20/24	BARC	24,300	1.000	538	(21)	517	—
People’s Republic of China/A3	6/20/22	BNPSW	22,800	1.000	499	(114)	385	—
People’s Republic of China/A3	12/20/23	GSI	11,245	1.000	299	(173)	126	—
Saudi Arabia/A1	6/20/24	MSCS	24,560	1.000	314	(191)	123	—
Verizon Communications Inc./Baa1	12/20/22	GSI	15,585	1.000	316	(183)	133	—
					3,306	(1,075)	2,231	—

56

Intermediate-Term Investment-Grade Fund

Over-the-Counter Credit Default Swaps (continued)

						Remaining
				Periodic		Up-Front
				Premium		Premium
			Notional	Received		Received	Unrealized	Unrealized
Reference	Termination		Amount	(Paid)2	Value	(Paid)	Appreciation	(Depreciation)
Entity	Date	Counterparty	($000)	(%)	($000)	($000)	($000)	($000)
Credit Protection Purchased
American International Group Inc.	12/20/20	GSCM	5,625	(1.000)	(70)	36	—	(34)
American International Group Inc.	12/20/20	GSCM	2,835	(1.000)	(35)	(12)	—	(47)
Bank of America Corp.	3/20/20	GSCM	7,870	(1.000)	(44)	16	—	(28)
Bank of China Ltd.	12/20/21	BNPSW	6,200	(1.000)	(119)	(10)	—	(129)
Bank of China Ltd.	6/20/22	BNPSW	22,800	(1.000)	(503)	2	—	(501)
Commerzbank AG	6/20/21	BOANA	24,495	(1.000)	(353)	(175)	—	(528)
CVS Health Corp.	12/20/21	BARC	3,220	(1.000)	(59)	50	—	(9)
CVS Health Corp.	12/20/21	BOANA	15,000	(1.000)	(274)	235	—	(39)
Deutsche Bank AG	12/20/22	JPMC	15,195	(1.000)	128	50	178	—
Deutsche Bank AG	6/20/24	GSI	5,4001	(1.000)	125	(178)	—	(53)
Federative Republic of Brazil	6/20/24	JPMC	26,700	(1.000)	308	(974)	—	(666)
Federative Republic of Brazil	12/20/25	BOANA	3,885	(1.000)	122	(713)	—	(591)
Federative Republic of Brazil	12/20/25	GSCM	2,485	(1.000)	78	(426)	—	(348)
JPMorgan Chase Bank N.A.	12/20/20	MSCS	25,000	(1.000)	(300)	44	—	(256)
LafargeHolcim Ltd.	6/20/24	BNPSW	8,6551	(1.000)	(193)	37	—	(156)
Lincoln National Corp.	6/20/21	BARC	10,000	(1.000)	(159)	(83)	—	(242)
Lincoln National Corp.	6/20/21	BARC	1,555	(1.000)	(25)	(16)	—	(41)
Lincoln National Corp.	6/20/21	BARC	1,550	(1.000)	(24)	16	—	(8)

57

Intermediate-Term Investment-Grade Fund

Over-the-Counter Credit Default Swaps (continued)

						Remaining
				Periodic		Up-Front
				Premium		Premium
			Notional	Received		Received	Unrealized	Unrealized
Reference	Termination		Amount	(Paid)2	Value	(Paid)	Appreciation	(Depreciation)
Entity	Date	Counterparty	($000)	(%)	($000)	($000)	($000)	($000)
Lincoln National Corp.	12/20/21	BARC	3,165	(1.000)	(59)	(4)	—	(63)
McDonald’s Corp.	6/20/22	GSI	12,325	(1.000)	(325)	228	—	(97)
People’s Republic of China	12/20/23	BARC	6,425	(1.000)	(179)	142	—	(37)
People’s Republic of China	12/20/23	BARC	4,820	(1.000)	(134)	103	—	(31)
Republic of Colombia	6/20/24	HSBCC	12,700	(1.000)	(96)	23	—	(73)
Republic of Colombia	6/20/24	HSBCC	10,750	(1.000)	(82)	(80)	—	(162)
Republic of Colombia	6/20/24	HSBCC	5,600	(1.000)	(42)	(42)	—	(84)
Republic of Indonesia	6/20/24	BARC	5,000	(1.000)	(53)	34	—	(19)
Republic of Indonesia	6/20/24	BARC	2,600	(1.000)	(27)	16	—	(11)
Republic of Indonesia	6/20/24	BNPSW	4,640	(1.000)	(49)	29	—	(20)
Republic of South Africa	6/20/24	JPMC	11,520	(1.000)	374	(511)	—	(137)
Republic of South Africa	6/20/24	MSCS	23,775	(1.000)	772	(1,065)	—	(293)
Republic of Turkey	12/20/19	GSI	9,050	(1.000)	11	(18)	—	(7)
Societe Generale SA	12/20/21	JPMC	14,675	(1.000)	(303)	43	—	(260)
Societe Generale SA	6/20/24	JPMC	16,5551	(1.000)	(309)	90	—	(219)
Standard Chartered Bank	12/20/21	JPMC	7,945	(1.000)	(159)	(9)	—	(168)
State of Qatar	6/20/22	BOANA	1,360	(1.000)	(31)	(10)	—	(41)
State of Qatar	6/20/22	CITNA	2,640	(1.000)	(61)	(18)	—	(79)
United Mexican States	6/20/24	BNPSW	16,630	(1.000)	111	(248)	—	(137)
United Mexican States	6/20/24	BNPSW	10,841	(1.000)	72	(166)	—	(94)
United Mexican States	6/20/24	BNPSW	9,315	(1.000)	62	(105)	—	(43)
United Mexican States	6/20/24	BNPSW	6,500	(1.000)	43	(43)	—	—

58

Intermediate-Term Investment-Grade Fund

Over-the-Counter Credit Default Swaps (continued)

						Remaining
				Periodic		Up-Front
				Premium		Premium
			Notional	Received		Received	Unrealized	Unrealized
Reference	Termination		Amount	(Paid)2	Value	(Paid)	Appreciation	(Depreciation)
Entity	Date	Counterparty	($000)	(%)	($000)	($000)	($000)	($000)
United Mexican States	6/20/24	JPMC	12,775	(1.000)	85	(141)	—	(56)
United Mexican States	6/20/24	JPMC	10,000	(1.000)	66	(68)	—	(2)
Wells Fargo & Co.	9/20/20	BOANA	9,700	(1.000)	(97)	28	—	(69)
					(1,807)	(3,893)	178	(5,878)
					1,499	(4,968)	2,409	(5,878)

The notional amount represents the maximum potential amount the fund could be required to pay as a seller of credit protection if the reference entity was subject to a credit event.

1Notional amount denominated in euro.

2Periodic premium received/paid quarterly.

BARC—Barclays Bank plc.

BNPSW—BNP Paribas.

BOANA—Bank of America, N.A.

CITNA—Citibank, N.A.

DBAG—Deutsche Bank AG.

GSCM—Goldman Sachs Bank USA.

GSI—Goldman Sachs International.

HSBCC—HSBC Bank USA, N.A.

JPMC—JPMorgan Chase Bank, N.A.

MSCS—Morgan Stanley Capital Services LLC.

At July 31, 2019, the counterparties had deposited in segregated accounts securities with a value of $7,579,000 and cash of $5,116,000 in connection with open forward currency contracts and open over-the-counter swap contracts.

59

Intermediate-Term Investment-Grade Fund

Centrally Cleared Interest Rate Swaps

				Fixed		Floating
				Interest		Interest
				Rate		Rate				Unrealized
	Future	Notional		Received		Received				Appreciation
	Effective	Amount		(Paid	)	(Paid	)	Value		(Depreciation	)
Termination Date	Date	($000	)	(%	)	(%	)	($000	)	($000	)
9/18/20	9/18/191	125,366		3.000	2	0.000	3	1,170		(151	)
9/20/21	9/18/191	123,039		(1.750	)2	0.000	3	338		266
9/19/22	9/18/191	201,483		(1.750	)2	0.000	3	453		425
9/18/23	9/18/191	114,640		(1.750	)2	0.000	3	232		160
9/18/24	9/18/191	138,925		(2.000	)2	0.000	3	(1,294	)	(3	)
9/18/26	9/18/191	81,231		(3.000	)2	0.000	3	(6,133	)	(256	)
7/9/29	N/A	786		(1.941	)2	2.311	3	1		—
11/21/29	11/21/191	19,406		2.392	2	0.000	3	786		456
11/26/29	11/26/191	17,215		(2.050	)2	0.000	3	(159	)	(159	)
8/5/49	8/5/191	30,1824		.743	5	0.000	6	2,092		1,173
								(2,514	)	1,911

1Forward interest rate swap. In a forward interest rate swap, the fund and the counterparty agree to make periodic net payments beginning on a specified future effective date.

2 Fixed interest payment received/paid semiannually.

3 Based on 3M LIBOR as of the most recent payment date. Floating interest payment received/paid quarterly.

4 Notional amount denominated in euro.

5 Fixed interest payment received/paid annually.

6 Based on 6M EURIBOR as of the most recent payment date. Floating interest payment received/paid semiannually.

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

60

Intermediate-Term Investment-Grade Fund

Statement of Operations

	Six Months Ended
	July 31, 2019
	($000	)
Investment Income
Income
Dividends	159
Interest1	504,022
Total Income	504,181
Expenses
The Vanguard Group—Note B
Investment Advisory Services	1,986
Management and Administrative—Investor Shares	1,812
Management and Administrative—Admiral Shares	10,574
Marketing and Distribution—Investor Shares	108
Marketing and Distribution—Admiral Shares	667
Custodian Fees	117
Shareholders’ Reports—Investor Shares	78
Shareholders’ Reports—Admiral Shares	394
Trustees’ Fees and Expenses	8
Total Expenses	15,744
Net Investment Income	488,437
Realized Net Gain (Loss)
Investment Securities Sold1	188,463
Futures Contracts	182,341
Options Purchased	(157	)
Options Written	7,162
Swap Contracts	(26,373	)
Forward Currency Contracts	3,667
Foreign Currencies	6,410
Realized Net Gain (Loss)	361,513
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	994,668
Futures Contracts	(76,716	)
Options Purchased	(1,305	)
Options Written	(535	)
Swap Contracts	2,569
Forward Currency Contracts	21,045
Foreign Currencies	(195	)
Change in Unrealized Appreciation (Depreciation)	939,531
Net Increase (Decrease) in Net Assets Resulting from Operations	1,789,481

1Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $8,132,000, $1,000, and ($11,000), respectively. Purchases and sales are for temporary cash investment purposes.

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

61

Intermediate-Term Investment-Grade Fund

Statement of Changes in Net Assets

	Six Months Ended		Year Ended
	July 31,		January 31,
	2019		2019
	($000	)	($000	)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	488,437		956,302
Realized Net Gain (Loss)	361,513		(500,407	)
Change in Unrealized Appreciation (Depreciation)	939,531		217,239
Net Increase (Decrease) in Net Assets Resulting from Operations	1,789,481		673,134
Distributions
Net Investment Income
Investor Shares	(34,990	)	(70,981	)
Admiral Shares	(452,702	)	(894,900	)
Realized Capital Gain
Investor Shares	—		—
Admiral Shares	—		—
Total Distributions	(487,692	)	(965,881	)
Capital Share Transactions
Investor Shares	60,544		(329,408	)
Admiral Shares	365,289		275,334
Net Increase (Decrease) from Capital Share Transactions	425,833		(54,074	)
Total Increase (Decrease)	1,727,622		(346,821	)
Net Assets
Beginning of Period	29,125,778		29,472,599
End of Period	30,853,400		29,125,778

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

62

Intermediate-Term Investment-Grade Fund

Financial Highlights

Investor Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019		2019		2018		2017		2016		2015
Net Asset Value, Beginning of Period	$9.52		$9.61		$9.66		$9.72		$10.06		$9.81
Investment Operations
Net Investment Income	.156	1	.300	1	.277	1	.278		.288		.303
Net Realized and Unrealized Gain (Loss) on Investments	.420		(.087	)	(.034	)	.030		(.288	)	.341
Total from Investment Operations	.576		.213		.243		.308		.000		.644
Distributions
Dividends from Net Investment Income	(.156	)	(.303	)	(.274	)	(.276	)	(.296	)	(.307	)
Distributions from Realized Capital Gains	—		—		(.016	)	(.092	)	(.044	)	(.087	)
Total Distributions	(.156	)	(.303	)	(.290	)	(.368	)	(.340	)	(.394	)
Net Asset Value, End of Period	$9.94		$9.52		$9.61		$9.66		$9.72		$10.06
Total Return2	6.09%		2.31%		2.47%		3.16%		0.03%		6.71%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$2,272		$2,115		$2,472		$2,671		$2,701		$2,952
Ratio of Total Expenses to Average Net Assets	0.20%		0.20%		0.20%		0.20%		0.20%		0.20%
Ratio of Net Investment Income to Average Net Assets	3.24%		3.20%		2.84%		2.80%		2.94%		3.05%
Portfolio Turnover Rate	103%3		73%3		63%		68%		70%		88%

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

1 Calculated based on average shares outstanding.

2Total 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.

3 Includes 0% and 1% attributable to mortgage-dollar-roll activity.

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

63

Intermediate-Term Investment-Grade Fund

Financial Highlights

Admiral Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019		2019		2018		2017		2016		2015
Net Asset Value, Beginning of Period	$9.52		$9.61		$9.66		$9.72		$10.06		$9.81
Investment Operations
Net Investment Income	.161	1	.310	1	.288	1	.288		.298		.313
Net Realized and Unrealized Gain (Loss) on Investments	.420		(.087	)	(.039	)	.030		(.288	)	.341
Total from Investment Operations	.581		.223		.249		.318		.010		.654
Distributions
Dividends from Net Investment Income	(.161	)	(.313	)	(.283	)	(.286	)	(.306	)	(.317	)
Distributions from Realized Capital Gains	—		—		(.016	)	(.092	)	(.044	)	(.087	)
Total Distributions	(.161	)	(.313	)	(.299	)	(.378	)	(.350	)	(.404	)
Net Asset Value, End of Period	$9.94		$9.52		$9.61		$9.66		$9.72		$10.06
Total Return2	6.14%		2.41%		2.58%		3.27%		0.13%		6.81%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$28,582		$27,011		$27,000		$25,145		$18,764		$16,491
Ratio of Total Expenses to Average Net Assets	0.10%		0.10%		0.10%		0.10%		0.10%		0.10%
Ratio of Net Investment Income to Average Net Assets	3.34%		3.30%		2.94%		2.90%		3.04%		3.15%
Portfolio Turnover Rate	103%3		73%3		63%		68%		70%		88%

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

1Calculated based on average shares outstanding.

2Total 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.

3Includes 0% and 1% attributable to mortgage-dollar-roll activity.

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

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Intermediate-Term Investment-Grade Fund

Notes to Financial Statements

Vanguard Intermediate-Term Investment-Grade Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. Certain of the fund’s investments are in corporate debt instruments; the issuers’ abilities to meet their obligations may be affected by economic developments in their respective industries. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. To minimize the currency risk associated with investment in securities denominated in currencies other than the U.S. dollar, the fund attempts to hedge its currency exposures. 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.

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. Bonds and temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral. 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. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. 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.

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

3. Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes

65

Intermediate-Term Investment-Grade Fund

in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

During the six months ended July 31, 2019, the fund’s average investments in long and short futures contracts represented 18% and 8% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any assets pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized forward currency contract gains (losses).

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Intermediate-Term Investment-Grade Fund

During the six months ended July 31, 2019, the fund’s average investment in forward currency contracts represented 3% of net assets, based on the average of notional amounts at each quarter-end during the period.

5. Swap Contracts: The fund invests in credit default swaps to adjust the overall credit risk of the fund or to actively overweight or underweight credit risk to a specific issuer or group of issuers. The fund may sell credit protection through credit default swaps to simulate investments in long positions that are either unavailable or considered to be less attractively priced in the bond market. The fund may purchase credit protection through credit default swaps to reduce credit exposure to a given issuer or issuers. Under the terms of the swaps, an up-front payment may be exchanged between the seller and buyer. In addition, the seller of the credit protection receives a periodic payment of premium from the buyer that is a fixed percentage applied to a notional amount. If, for example, the reference entity is subject to a credit event (such as bankruptcy, failure to pay, or obligation acceleration) during the term of the swap, the seller agrees to either physically settle or cash settle the swap contract. If the swap is physically settled, the seller agrees to pay the buyer an amount equal to the notional amount and take delivery of a debt instrument of the reference issuer with a par amount equal to such notional amount. If the swap is cash settled, the seller agrees to pay the buyer the difference between the notional amount and the final price for the relevant debt instrument, as determined either in a market auction or pursuant to a pre-agreed-upon valuation procedure.

The fund enters into interest rate swap transactions to adjust the fund’s sensitivity to changes in interest rates and maintain the ability to generate income at prevailing market rates. Under the terms of the swaps, one party pays the other an amount that is a fixed percentage rate applied to a notional amount. In return, the counterparty agrees to pay a floating rate, which is reset periodically based on short-term interest rates, applied to the same notional amount.

The notional amounts of swap contracts are not recorded in the Statement of Net Assets. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the seller of credit protection is required to take delivery (or, in a cash settled swap, pay the settlement amount determined) upon occurrence of a credit event, periodic payments are made, or the swap terminates, at which time realized gain (loss) is recorded. The net premium to be received or paid by the fund under swap contracts is accrued daily and recorded as realized gain (loss) over the life of the contract.

The primary risk associated with selling credit protection is that, upon the occurrence of a defined credit event, the market value of the debt instrument received by the fund (or, in a cash settled swap, the debt instruments used to determine the settlement payment by the fund) will be significantly less than the amount paid by the fund and, in a physically settled swap, the fund may receive an illiquid debt instrument. A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty,

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Intermediate-Term Investment-Grade Fund

determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

The fund enters into centrally cleared interest rate and credit default swaps to achieve the same objectives specified with respect to the equivalent over-the-counter swaps but with less counterparty risk because a regulated clearinghouse is the counterparty instead of the clearing broker or executing broker. The clearinghouse imposes initial margin requirements to secure the fund’s performance, and requires daily settlement of variation margin representing changes in the market value of each contract. To further mitigate counterparty risk, the fund trades with a diverse group of prequalified executing brokers; monitors the financial strength of its clearing brokers, executing brokers, and clearinghouse; and has entered into agreements with its clearing brokers and executing brokers.

During the six months ended July 31, 2019, the fund’s average amounts of investments in credit protection sold and credit protection purchased represented 1% and 2% of net assets, respectively, based on the average of notional amounts at each quarter-end during the period. The average amount of investments in interest rate swaps represented 2% of net assets, based on the average of notional amounts at each quarter-end during the period.

6. Options: The fund invests in options contracts on futures and swaps to adjust its exposure to the underlying investments. The primary risk associated with purchasing options is that the value of the underlying investments may move in such a way that the option is out-of-the-money (the exercise price of the option exceeds the value of the underlying investment), the position is worthless at expiration, and the fund loses the premium paid. The primary risk associated with selling options is that the value of the underlying investments may move in such a way that the option is in-the-money (the exercise price of the option exceeds the value of the underlying investment), the counterparty exercises the option, and the fund loses an amount equal to the market value of the option written less the premium received.

The fund invests in options on futures, which are exchange-traded. Counterparty risk involving exchange-traded options on futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades options on futures on an exchange, monitors the financial strength of its clearing brokers and clearinghouses, and has entered into clearing agreements with its clearing brokers.

The fund invests in options on swaps (swaptions), which are transacted over-the-counter (OTC) and not on an exchange. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return of a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. Unlike exchange-traded options, which are standardized with respect to the underlying instrument, expiration date, contract size, and strike price, the terms of OTC options generally are established through negotiation with the other party to the option contract. Although this type of arrangement allows the purchaser or writer greater flexibility to tailor an option to its needs, OTC options generally involve greater credit

68

Intermediate-Term Investment-Grade Fund

risk than exchange-traded options. Credit risk involves the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund mitigates its counterparty risk by entering into swaptions with a diverse group of prequalified counterparties and monitoring their financial strength.

Swaptions are valued daily based on market quotations received from independent pricing services or recognized dealers. The premium paid for a purchased option is recorded in the Statement of Net Assets as an asset that is subsequently adjusted daily to the current market value of the option purchased. The premium received for a written option is recorded in the Statement of Net Assets as an asset with an equal liability that is subsequently adjusted daily to the current market value of the option written. Fluctuations in the value of the options are recorded in the Statement of Operations as unrealized appreciation (depreciation) until expired, closed, or exercised, at which time realized gains (losses) are recognized.

During the six months ended July 31, 2019, the fund’s average value of investments in swaptions purchased and swaptions written each represented less than 1% of net assets, respectively, based on the average market values at each quarter-end during the period.

7. To Be Announced (TBA) Transactions: A TBA transaction is an agreement to buy or sell mortgage-backed securities with agreed-upon characteristics (face amount, coupon, maturity) for settlement at a future date. The fund may be a seller of TBA transactions to reduce its exposure to the mortgage-backed securities market or in order to sell mortgage-backed securities it owns under delayed-delivery arrangements. When the fund is a buyer of TBA transactions, it maintains cash or short-term investments in an amount sufficient to meet the purchase price at the settlement date of the TBA transaction. The primary risk associated with TBA transactions is that a counterparty may default on its obligations. The fund mitigates its counterparty risk by, among other things, performing a credit analysis of counterparties, allocating transactions among numerous counterparties, and monitoring its exposure to each counterparty. The fund may also enter into a Master Securities Forward Transaction Agreement (MSFTA) with certain counterparties and require them to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. Under an MSFTA, upon a counterparty default (including bankruptcy), the fund may terminate any TBA transactions with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements.

8. Mortgage Dollar Rolls: The fund enters into mortgage-dollar-roll transactions in which the fund sells mortgage-backed securities to a dealer and simultaneously agrees to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are typically invested in high-quality short-term fixed income securities. The fund forgoes principal and interest paid on the securities sold and is compensated by interest earned on the proceeds of the sale and by a lower price on the securities to be repurchased. The fund accounts for mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the fund’s portfolio turnover rate. Amounts to be received or paid in connection with open mortgage dollar rolls are included in Receivables for Investment Securities Sold or Payables for Investment Securities Purchased in the Statement of Net Assets.

69

Intermediate-Term Investment-Grade Fund

9. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2016–2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

10. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

11. Credit Facility: 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 that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

12. Other: Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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

B.In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $1,462,000, representing 0.00% of the fund’s net assets and 0.58% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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Intermediate-Term Investment-Grade Fund

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

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

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

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

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1		Level 2		Level 3
Investments	($000	)	($000	)	($000	)
U.S. Government and Agency Obligations	—		1,779,530		—
Asset-Backed/Commercial Mortgage-Backed Securities	—		5,839,187		10,800
Corporate Bonds	—		19,833,291		2,300
Sovereign Bonds	—		2,112,120		—
Taxable Municipal Bonds	—		46,090		—
Convertible Preferred Stocks	—		—		—1
Temporary Cash Investments	584,903		399,027		—
Options Purchased	—		4,784		—
Options Written	—		(3,308	)	—
Futures Contracts—Assets2	3,676		—		—
Futures Contracts—Liabilities2	(7,259	)	—		—
Forward Currency Contracts—Assets	—		12,051		—
Forward Currency Contracts—Liabilities	—		(1,720	)	—
Swap Contracts—Assets	1,2282		2,409		—
Swap Contracts—Liabilities	(391	)2	(5,878	)	—
Total	582,157		30,017,583		13,100

1 Market value of Convertible Preferred Stock is less than $500 and is based on Level 3 inputs.

2 Represents variation margin on the last day of the reporting period.

71

Intermediate-Term Investment-Grade Fund

D.   At July 31, 2019, the fair values of derivatives were reflected in the Statement of Net Assets as follows:

	Interest Rate		Currency		Credit
	Contracts		Contracts		Contracts		Total
Statement of Net Assets	($000	)	($000	)	($000	)	($000	)
Options Purchased	4,688		—		96		4,784
Variation Margin Receivable—Futures Contracts	3,676		—		—		3,676
Variation Margin Receivable—CC Swap Contracts	1,074		—		154		1,228
Unrealized Appreciation—Forward Currency Contracts	—		12,051		—		12,051
Unrealized Appreciation—OTC Swap Contracts	—		—		2,409		2,409
Total Assets	9,438		12,051		2,659		24,148
Options Written	(3,026	)	—		(282	)	(3,308	)
Variation Margin Payable—Futures Contracts	(7,259	)	—		—		(7,259	)
Variation Margin Payable—CC Swap Contracts	(208	)	—		(183	)	(391	)
Unrealized Depreciation—Forward Currency Contracts	—		(1,720	)	—		(1,720	)
Unrealized Depreciation—OTC Swap Contracts	—		—		(5,878	)	(5,878	)
Total Liabilities	(10,493	)	(1,720	)	(6,343	)	(18,556	)

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended July 31, 2019, were:

	Interest Rate		Currency		Credit
	Contracts		Contracts		Contracts		Total
Realized Net Gain (Loss) on Derivatives	($000	)	($000	)	($000	)	($000	)
Futures Contracts	182,341		—		—		182,341
Options Purchased	(63	)	—		(94	)	(157	)
Options Written	5,464		—		1,698		7,162
Swap Contracts	(27,475	)	—		1,102		(26,373	)
Forward Currency Contracts	—		3,667		—		3,667
Realized Net Gain (Loss) on Derivatives	160,267		3,667		2,706		166,640
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts	(76,716	)	—		—		(76,716	)
Options Purchased	(1,276	)	—		(29	)	(1,305	)
Options Written	(829	)	—		294		(535	)
Swap Contracts	6,353		—		(3,784	)	2,569
Forward Currency Contracts	—		21,045		—		21,045
Change in Unrealized Appreciation (Depreciation) on Derivatives	(72,468	)	21,045		(3,519	)	(54,942	)

72

Intermediate-Term Investment-Grade Fund

E.   As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000	)
Tax Cost	29,709,163
Gross Unrealized Appreciation	1,021,782
Gross Unrealized Depreciation	(107,426	)
Net Unrealized Appreciation (Depreciation)	914,356

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $485,416,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carry-forward balance above.

F.During the six months ended July 31, 2019, the fund purchased $13,147,046,000 of investment securities and sold $12,864,614,000 of investment securities, other than U.S. government securities and temporary cash investments. Purchases and sales of U.S. government securities were $1,586,434,000 and $2,242,810,000, respectively.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended July 31, 2019, such purchases and sales were $330,214,000 and $2,573,822,000, respectively; these amounts are included in the purchases and sales of investment securities noted above.

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

	Six Months Ended				Year Ended
	July 31, 2019				January 31, 2019
	Amount		Shares		Amount		Shares
	($000	)	(000	)	($000	)	(000	)
Investor Shares
Issued	320,253		32,922		409,991		43,707
Issued in Lieu of Cash Distributions	31,133		3,188		62,607		6,654
Redeemed	(290,842	)	(29,928	)	(802,006	)	(85,353	)
Net Increase (Decrease)—Investor Shares	60,544		6,182		(329,408	)	(34,992	)
Admiral Shares
Issued	3,298,299		339,521		6,514,554		693,184
Issued in Lieu of Cash Distributions	382,535		39,172		764,312		81,254
Redeemed	(3,315,545	)	(343,002	)	(7,003,532	)	(745,703	)
Net Increase (Decrease)—Admiral Shares	365,289		35,691		275,334		28,735

H.Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

73

Long-Term Investment-Grade Fund

Sector Diversification

As of July 31, 2019

Commercial Mortgage-Backed	0.7	%
Finance	20.3
Foreign	0.8
Government Mortgage-Backed	1.7
Industrial	44.5
Treasury/Agency	7.3
Utilities	15.6
Other	9.1

The table reflects the fund’s market exposure. Any holdings in short-term reserves are excluded. The agency and mortgage-backed securities sectors may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government.

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Long-Term Investment-Grade Fund

Financial Statements (unaudited)

Statement of Net Assets — Investments Summary

As of July 31, 2019

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

The fund 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.

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
U.S. Government and Agency Obligations
U.S. Government Securities
1	United States Treasury Note/Bond	4.500%	2/15/36	182,000		239,898		1.3%
	United States Treasury Note/Bond	3.000%	11/15/45	189,052		206,687		1.1%
2	United States Treasury Note/Bond	4.375%	5/15/40	126,785		168,663		0.9%
3	United States Treasury Note/Bond	4.750%	2/15/37	109,059		149,190		0.8%
	United States Treasury Note/Bond	2.875%	8/15/45	118,700		126,749		0.7%
2	United States Treasury Note/Bond	3.000%	2/15/48	59,320		64,909		0.3%
2,3	United States Treasury Note/Bond	2.250%–4.375%	11/15/24–8/15/48	200,982		215,240		1.1%
	U.S. Government Securities—Other †					22,747		0.1%
						1,194,083		6.3%
Agency Notes †						57,236		0.3%
Conventional Mortgage-Backed Securities
4,5	Fannie Mae Pool	2.980%–4.180%	8/1/30–9/1/34	275,912		301,578		1.5%
4,5	Freddie Mac Pool	3.390%	7/1/34	12,909		13,573		0.1%
5,6	UMBS TBA	4.000%	7/1/49–8/1/49	955		989		0.0%
						316,140		1.6%
Nonconventional Mortgage-Backed Securities
4,5	Fannie Mae REMICS	3.000%–3.500%	7/25/47–4/25/59	26,754		28,165		0.2%
4,5,7,8	Fannie Mae REMICS,
	6.200% - 1M USD LIBOR	3.934%	10/25/47	1,581		279		0.0%
	Nonconventional Mortgage-Backed Securities—Other †					42,627		0.2%
						71,071		0.4%
Total U.S. Government and Agency Obligations (Cost $1,531,910)						1,638,530		8.6%
Asset-Backed/Commercial Mortgage-Backed Securities (Cost $122,445) †						128,921		0.7%
Corporate Bonds
Finance
	Banking
5	Bank of America Corp.	4.244%	4/24/38	80,790		89,436		0.5%
5	Bank of America Corp.	3.946%	1/23/49	65,835		70,353		0.4%
5	Bank of America Corp.	3.705%–5.875%	4/24/28–3/15/50	155,130		174,963		0.9%

75

Long-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
	Bank of America NA	6.000%	10/15/36	20,450		27,141		0.1%
	Bank One Corp.	8.000%	4/29/27	21,400		28,404		0.1%
5	Citigroup Inc.	3.878%	1/24/39	64,990		68,619		0.4%
	Citigroup Inc.	4.650%	7/23/48	54,226		63,607		0.3%
5	Citigroup Inc.	4.281%–4.650%	7/30/45–4/24/48	27,553		31,434		0.2%
5	Goldman Sachs Group Inc.	4.017%	10/31/38	139,635		145,508		0.8%
5	Goldman Sachs Group Inc.	3.691%–6.250%	6/5/28–10/21/45	143,724		160,048		0.8%
	HSBC Bank USA NA	5.625%–5.875%	11/1/34–8/15/35	67,630		84,516		0.4%
	HSBC Holdings plc	6.800%	6/1/38	48,749		66,143		0.3%
5,9	HSBC Holdings plc	3.000%–7.625%	11/23/26–1/14/42	85,965		109,042		0.6%
5	JPMorgan Chase & Co.	3.964%	11/15/48	103,215		110,679		0.6%
5	JPMorgan Chase & Co.	3.882%	7/24/38	72,532		76,446		0.4%
	JPMorgan Chase & Co.	6.400%	5/15/38	54,099		75,345		0.4%
5,10	JPMorgan Chase & Co.	1.090%–5.600%	3/11/27–1/23/49	217,922		241,915		1.3%
5	Morgan Stanley	3.971%	7/22/38	94,095		98,866		0.5%
5	Morgan Stanley	3.772%–7.250%	1/24/29–1/22/47	154,130		185,932		1.0%
	Wachovia Corp.	5.500%	8/1/35	2,400		2,906		0.0%
	Wells Fargo & Co.	5.606%	1/15/44	139,708		176,427		0.9%
	Wells Fargo & Co.	5.375%	11/2/43	55,167		67,750		0.4%
	Wells Fargo & Co.	3.900%–4.900%	1/24/29–12/7/46	115,586		130,424		0.7%
	Wells Fargo Bank NA	6.600%	1/15/38	500		695		0.0%
	Banking—Other †					11,190		0.1%
11	Brokerage †					28,698		0.2%
	Insurance
	Berkshire Hathaway Finance Corp.	4.250%	1/15/49	68,185		76,926		0.4%
9	Berkshire Hathaway Finance Corp.	2.375%–5.750%	6/19/39–8/15/48	35,430		40,423		0.2%
10	Berkshire Hathaway Inc.	1.125%–4.500%	3/16/27–2/11/43	53,457		62,260		0.3%
	UnitedHealth Group Inc.	4.750%	7/15/45	54,040		63,173		0.3%
	UnitedHealth Group Inc.	3.500%–6.875%	7/15/35–8/15/59	280,480		311,336		1.7%
11	Insurance—Other †					487,500		2.6%
	Real Estate Investment Trusts †					15,546		0.1%
						3,383,651		17.9%
Industrial
	Basic Industry
	Rio Tinto Finance USA plc	4.125%	8/21/42	56,381		62,567		0.3%
11	Basic Industry—Other †					89,006		0.5%
	Capital Goods
	Precision Castparts Corp.	4.375%	6/15/45	3,000		3,405		0.0%
11	Capital Goods—Other †					464,760		2.5%
	Communication
	Comcast Corp.	4.950%	10/15/58	109,865		132,506		0.7%
	Comcast Corp.	3.969%	11/1/47	83,688		87,204		0.5%
	Comcast Corp.	4.750%	3/1/44	60,670		70,704		0.4%
	Comcast Corp.	4.600%	10/15/38	54,635		62,833		0.3%
	Comcast Corp.	3.200%–6.500%	10/15/30–11/1/52	305,298		340,558		1.8%
	NBCUniversal Media LLC	4.450%–5.950%	4/1/41–1/15/43	39,685		47,274		0.2%
11	Communication—Other †					320,877		1.7%
	Consumer Cyclical
	Amazon.com Inc.	4.050%	8/22/47	105,380		118,934		0.6%

76

Long-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
	Amazon.com Inc.	3.875%–4.950%	12/5/34–8/22/57	121,869		141,012		0.8%
	Home Depot Inc.	4.875%	2/15/44	66,510		81,068		0.4%
	Home Depot Inc.	3.500%–5.950%	12/16/36–9/15/56	145,985		177,767		0.9%
	Walmart Inc.	3.950%	6/28/38	93,920		105,338		0.6%
	Walmart Inc.	3.625%	12/15/47	70,485		75,955		0.4%
	Walmart Inc.	3.250%–5.625%	7/8/29–6/29/48	85,780		97,131		0.5%
11	Consumer Cyclical—Other †					431,212		2.3%
	Consumer Noncyclical
	Gilead Sciences Inc.	4.150%–5.650%	9/1/35–3/1/47	171,467		190,397		1.0%
	Johnson & Johnson	3.400%–3.750%	3/1/36–3/3/47	190,640		201,819		1.1%
	Merck & Co. Inc.	3.700%	2/10/45	75,520		79,845		0.4%
	Pfizer Inc.	3.900%–7.200%	9/15/38–3/15/49	159,392		192,002		1.0%
	Wyeth LLC	5.950%	4/1/37	56,800		75,322		0.4%
	Wyeth LLC	6.000%–6.500%	2/1/34–2/15/36	5,702		7,631		0.0%
11	Consumer Noncyclical—Other †					1,321,126		7.0%
	Energy
	ConocoPhillips	6.500%	2/1/39	52,636		73,589		0.4%
	Dominion Energy Gas Holdings LLC	4.800%	11/1/43	1,575		1,814		0.0%
	Shell International Finance BV	3.750%–6.375%	5/11/35–9/12/46	194,092		220,917		1.2%
11	Energy—Other †					305,655		1.6%
11	Other Industrial †					64,298		0.3%
	Technology
	Apple Inc.	4.650%	2/23/46	51,777		61,823		0.3%
	Apple Inc.	3.450%–4.500%	2/23/36–11/13/47	260,274		282,175		1.5%
	International Business Machines Corp.	4.150%	5/15/39	105,125		114,152		0.6%
	International Business Machines Corp.	4.250%	5/15/49	95,895		103,264		0.6%
	International Business Machines Corp.	4.000%	6/20/42	2,200		2,313		0.0%
	Microsoft Corp.	3.700%	8/8/46	86,005		93,118		0.5%
	Microsoft Corp.	4.450%	11/3/45	70,670		85,529		0.5%
	Microsoft Corp.	3.750%	2/12/45	75,350		81,892		0.4%
	Microsoft Corp.	4.250%	2/6/47	66,743		78,416		0.4%
	Microsoft Corp.	4.750%	11/3/55	50,365		64,460		0.3%
	Microsoft Corp.	3.450%–5.300%	2/12/35–2/6/57	172,086		191,703		1.0%
	Oracle Corp.	4.000%	7/15/46	87,475		92,608		0.5%
	Oracle Corp.	6.500%	4/15/38	63,400		89,303		0.5%
	Oracle Corp.	5.375%	7/15/40	49,740		62,378		0.3%
	Oracle Corp.	3.800%–6.125%	7/15/36–5/15/55	152,169		167,528		0.9%
11	Technology—Other †					320,341		1.7%
	Transportation
	Burlington Northern Santa Fe LLC	3.550%–7.950%	8/15/30–2/15/50	249,949		284,512		1.5%
	Transportation—Other †					123,500		0.6%
						7,943,541		41.9%
Utilities
	Electric
	Baltimore Gas & Electric Co.	4.250%–6.350%	10/1/36–9/15/48	27,705		31,269		0.2%
	Berkshire Hathaway Energy Co.	4.450%–6.125%	4/1/36–1/15/49	98,362		119,312		0.6%

77

Long-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
	Commonwealth Edison Co.	3.650%–5.900%	3/15/36–3/1/49	115,705		128,705		0.7%
	Consolidated Edison Co. of New York Inc.	3.850%–6.750%	6/15/33–5/15/58	186,594		218,324		1.1%
	Dominion Energy South Carolina Inc.	4.350%–6.625%	2/1/32–6/15/43	54,400		70,694		0.4%
	Duke Energy Carolinas LLC	6.100%	6/1/37	51,000		67,725		0.4%
	Duke Energy Carolinas LLC	3.700%–6.450%	10/15/32–12/1/47	85,172		95,872		0.5%
	Duke Energy Florida LLC	3.400%–6.350%	9/15/37–7/15/48	25,510		29,338		0.2%
	Duke Energy Indiana LLC	4.200%–6.450%	10/15/35–7/15/43	60,336		73,750		0.4%
	Duke Energy Ohio Inc.	3.700%–4.300%	6/15/46–2/1/49	28,825		31,649		0.2%
	Duke Energy Progress LLC	3.700%–4.200%	5/15/42–10/15/46	104,559		113,139		0.6%
	MidAmerican Energy Co.	4.250%–5.800%	10/15/36–7/15/49	69,930		81,826		0.4%
	Nevada Power Co.	5.375%–6.650%	4/1/36–5/15/41	43,880		53,952		0.3%
	PacifiCorp	4.100%–6.350%	6/15/35–2/15/50	155,002		194,845		1.0%
	PECO Energy Co.	3.700%–4.800%	10/15/43–3/1/48	58,798		64,204		0.3%
	Potomac Electric Power Co.	4.150%–7.900%	11/15/37–3/15/43	16,950		18,955		0.1%
	Virginia Electric & Power Co.	6.000%	5/15/37	57,330		74,726		0.4%
	Virginia Electric & Power Co.	3.800%–6.350%	11/30/37–12/1/48	68,844		76,300		0.4%
11	Electric—Other †					1,192,686		6.3%
11	Natural Gas †					119,694		0.6%
						2,856,965		15.1%
Total Corporate Bonds (Cost $12,562,664)						14,184,157		74.9%
11 Sovereign Bonds (Cost $155,764) †						168,904		0.9%
Taxable Municipal Bonds
	California GO	7.300%	10/1/39	75,015		114,105		0.6%
	California GO	7.600%	11/1/40	64,585		105,830		0.6%
	California GO	4.500%–7.625%	4/1/33–3/1/40	120,640		169,293		0.9%
	New Jersey Turnpike Authority Revenue	7.102%	1/1/41	42,463		65,047		0.4%
	New York Metropolitan Transportation Authority Revenue (Dedicated Tax Fund)	7.336%	11/15/39	63,315		98,669		0.5%
	Taxable Municipal Bonds—Other †					1,294,439		6.8%
Total Taxable Municipal Bonds (Cost $1,486,653)						1,847,383		9.8%
				Shares
Temporary Cash Investments
Money Market Fund
12	Vanguard Market Liquidity Fund	2.386%		6,681,821		668,249		3.5%

78

Long-Term Investment-Grade Fund

				Face		Market		Percentage
			Maturity	Amount		Value·		of Net
		Coupon	Date	($000	)	($000	)	Assets
Repurchase Agreements
	Bank of America Securities, LLC (Dated 7/31/19, Repurchase Value $33,502,000, collateralized by Government National Mortgage Assn. 3.500%, 5/20/49, with a value of $34,170,000)	2.560%	8/1/19	33,500		33,500		0.2%
	Barclays Capital Inc. (Dated 7/31/19, Repurchase Value $85,406,000, collateralized by U.S. Treasury Note/Bond 3.375%, 11/15/48, with a value of $87,108,000)	2.530%	8/1/19	85,400		85,400		0.4%
	Citigroup Global Markets Inc. (Dated 7/31/19, Repurchase Value $94,307,000, collateralized by U.S. Treasury Note/Bond 0.750%–3.125%, 8/15/19–5/15/48, with a value of $96,186,000)	2.520%	8/1/19	94,300		94,300		0.5%
	RBC Capital Markets LLC (Dated 7/31/19, Repurchase Value $71,605,000, collateralized by Federal Home Loan Mortgage Corp. 3.000%–4.500%, 11/1/46–6/1/49, and Federal National Mortgage Assn. 3.500%–4.500%, 11/1/25–1/1/57, with a value of $73,032,000)	2.540%	8/1/19	71,600		71,600		0.4%
	Wells Fargo & Co. (Dated 7/31/19, Repurchase Value $150,711,000, collateralized by Federal Home Loan Mortgage Corp. 3.000%–5.000%, 4/1/32–10/1/48, and Federal National Mortgage Assn. 1.870%–5.500%, 7/1/21–9/1/57, with a value of $153,714,000)	2.540%	8/1/19	150,700		150,700		0.8%
						435,500		2.3%
Total Temporary Cash Investments (Cost $1,103,720)						1,103,749		5.8%

79

Long-Term Investment-Grade Fund

				Notional
				Amount on
				Underlying		Market		Percentage
		Expiration	Exercise	Swap		Value·		of Net
	Counterparty	Date	Rate	($000	)	($000	)	Assets
Options Purchased
Over-the-Counter Swaptions (0.0%)
Call Swaptions
10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.941% Semiannually	BNPSW	10/2/19	1.941%	1,800		15		0.0%
10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.916% Semiannually	GSCM	10/3/19	1.916%	4,500		34		0.0%
10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 2.035% Semiannually	JPMC	10/17/19	2.035%	1,800		26		0.0%
5-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.857% Semiannually	DBAG	6/21/21	1.857%	3,600		62		0.0%
						137		0.0%
Put Swaptions
1-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 2.260% Semiannually	CITNA	8/23/19	2.260%	17,590		1		0.0%
10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.941% Semiannually	BNPSW	10/2/19	1.941%	1,800		16		0.0%
10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.916% Semiannually	GSCM	10/3/19	1.916%	4,500		47		0.0%
10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 2.035% Semiannually	JPMC	10/17/19	2.035%	1,800		11		0.0%
5-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.857% Semiannually	DBAG	6/21/21	1.857%	3,600		56		0.0%

80

Long-Term Investment-Grade Fund

				Notional
				Amount on
				Underlying		Market		Percentage
		Expiration	Exercise	Swap		Value·		of Net
	Counterparty	Date	Rate	($000	)	($000	)	Assets
5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	BARC	8/21/19	0.600%	3,690		2		0.0%
5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	JPMC	9/18/19	0.700%	7,440		4		0.0%
						137		0.0%
Total Options Purchased (Cost $348)						274		0.0%
Total Investments (Cost $16,963,504)						19,071,918		100.7%
						Amount
						($000	)
Other Assets and Liabilities
Other Assets
Investment in Vanguard						891
Receivables for Investment Securities Sold						17,703
Receivables for Accrued Income						190,626
Receivables for Capital Shares Issued						22,297
Variation Margin Receivable—Futures Contracts						7,858
Variation Margin Receivable—CC Swap Contracts						322
Unrealized Appreciation—Forward Currency Contracts						928
Unrealized Appreciation—OTC Swap Contracts						160
Other Assets						829
Total Other Assets						241,614		1.3%
Liabilities
Payables for Investment Securities Purchased						(138,196	)
Payables to Investment Advisor						(695	)
Payables for Capital Shares Redeemed						(203,134	)
Payables for Distributions						(8,517	)
Payables to Vanguard						(9,577	)
Options Written, at Value13						(190	)
Variation Margin Payable—Futures Contracts						(532	)
Variation Margin Payable—CC Swap Contracts						(4,676	)
Unrealized Depreciation—Forward Currency Contracts						(63	)
Unrealized Depreciation—OTC Swap Contracts						(467	)
Other Liabilities						(173	)
Total Liabilities						(366,220	)	(2.0%)
Net Assets						18,947,312		100.0%

81

Long-Term Investment-Grade Fund

At July 31, 2019, net assets consisted of:

	Amount
	($000)
Paid-in Capital	16,750,001
Total Distributable Earnings (Loss)	2,197,311
Net Assets	18,947,312
Investor Shares—Net Assets
Applicable to 427,081,691 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	4,599,402
Net Asset Value Per Share—Investor Shares	$10.77
Admiral Shares—Net Assets
Applicable to 1,332,394,446 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	14,347,910
Net Asset Value Per Share—Admiral Shares	$10.77

·See Note A in Notes to Financial Statements.

†Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets.

1Securities with a value of $1,027,000 have been segregated as collateral for open forward currency contracts and over-the-counter swap contracts.

2Securities with a value of $20,357,000 have been segregated as initial margin for open futures contracts.

3Securities with a value of $77,202,000 have been segregated as initial margin for open centrally cleared swap contracts.

4The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.

5The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.

6Includes securities purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of July 31, 2019.

7Inverse interest-only security.

8Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.

9Face amount denominated in British pounds.

10Face amount denominated in euro.

11Certain of the fund’s securities are 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 July 31, 2019, the aggregate value of these securities was $779,428,000, representing 4.1% of net assets.

12Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

13Includes premiums received of $137,000.

BARC—Barclays Bank plc.

BNPSW—BNP Paribas.

CC—Centrally Cleared.

CITNA—Citibank, N.A.

DBAG—Deutsche Bank AG.

GO—General Obligation Bond.

GSCM—Goldman Sachs Bank USA.

JPMC—JPMorgan Chase Bank, N.A.

LIBOR—London Interbank Offered Rate.

OTC—Over-the-Counter.

REMICS—Real Estate Mortgage Investment Conduits.

TBA—To Be Announced.

82

Long-Term Investment-Grade Fund

Derivative Financial Instruments Outstanding as of Period End

Options Written

				Notional
				Amount on
				Underlying		Market
		Expiration	Exercise	Swap		Value
	Counterparty	Date	Rate	($000)		($000)
Over-the-Counter Swaptions
Call Swaptions
30-Year Interest Rate Swap, Receives 6M EURIBOR Semiannually, Pays 0.743% Annually	BNPSW	8/1/19	0.743%	EUR	900	(60)
30-Year Interest Rate Swap, Receives 6M EURIBOR Semiannually, Pays 0.738% Annually	JPMC	8/2/19	0.738%	EUR	900	(58)
10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.983% Semiannually	GSCM	1/30/20	1.983%	USD	1,800	(30)
5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	JPMC	8/21/19	0.550%	USD	7,375	(8)
						(156)
Put Swaptions
30-Year Interest Rate Swap, Pays 6M EURIBOR Semiannually, Receives 0.743% Annually	BNPSW	8/1/19	0.743%	EUR	900	—
30-Year Interest Rate Swap, Pays 6M EURIBOR Semiannually, Receives 0.738% Annually	JPMC	8/2/19	0.738%	EUR	900	—
10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.983% Semiannually	GSCM	1/30/20	1.983%	USD	1,800	(25)
5-Year CDX-NA-IG-S32-V1, Credit Protection Purchased, Pays 1.000% Quarterly	JPMC	8/21/19	0.550%	USD	7,375	(9)
						(34)
Total Options Written (Premiums Received $137)						(190)

BNPSW—BNP Paribas.

EURIBOR—Euro Interbank Offered Rate.

GSCM—Goldman Sachs Bank USA.

JPMC—JPMorgan Chase Bank, N.A.

83

Long-Term Investment-Grade Fund

Futures Contracts
					Value and
					Unrealized
		Number of		Notional	Appreciation
		Long (Short)		Amount	(Depreciation)
	Expiration	Contracts		(000)	($000)
Long Futures Contracts
30-Year U.S. Treasury Bond	September 2019	3,166	USD	492,610	8,987
Ultra Long U.S. Treasury Bond	September 2019	1,688	USD	299,726	9,694
Ultra 10-Year U.S. Treasury Note	September 2019	679	USD	93,596	1,747
2-Year U.S. Treasury Note	September 2019	138	USD	29,588	21
10-Year U.S. Treasury Note	September 2019	43	USD	5,479	90
Long Gilt	September 2019	30	GBP	3,985	9
5-Year U.S. Treasury Note	September 2019	36	USD	4,232	48
Euro-Schatz	September 2019	4	EUR	449	1
					20,597
Short Futures Contracts
10-Year U.S. Treasury Note	September 2019	(1,695)	USD	(215,980)	(268)
2-Year U.S. Treasury Note	September 2019	(301)	USD	(64,536)	49
Euro-Bund	September 2019	(227)	EUR	(39,741)	(448)
5-Year U.S. Treasury Note	September 2019	(124)	USD	(14,577)	48
Euro-Buxl	September 2019	(31)	EUR	(6,478)	(179)
Euro-Bobl	September 2019	(17)	EUR	(2,295)	(4)
					(802)
					19,795

84

Long-Term Investment-Grade Fund

Forward Currency Contracts
Counterparty	Contract Settlement Date	Contract Amount (000)				Unrealized Appreciation ($000	)	Unrealized (Depreciation ($000	) )
		Receive		Deliver
Goldman Sachs Bank AG	8/15/19	GBP	1,634	USD	2,045	—		(56	)
Bank of America, N.A.	8/15/19	EUR	912	USD	1,018	—		(7	)
State Street Bank and Trust Company	8/15/19	EUR	83	USD	93	—		—
Bank of America, N.A.	8/15/19	USD	33,110	EUR	29,363	564		—
Bank of America, N.A.	8/15/19	USD	9,874	GBP	7,878	286		—
RBC Capital Markets LLC	8/15/19	USD	9,799	MXN	187,963	17		—
JPMorgan Chase Bank, N.A.	8/15/19	USD	3,965	EUR	3,527	55		—
Goldman Sachs Bank AG	8/15/19	USD	236	EUR	211	2		—
Toronto-Dominion Bank	8/15/19	USD	123	AUD	175	2		—
Morgan Stanley Capital Services LLC	8/15/19	USD	89	EUR	79	1		—
HSBC Bank USA, N.A.	8/15/19	USD	76	EUR	68	1		—
Goldman Sachs Bank AG	8/15/19	USD	4	JPY	447	—		—
						928		(63	)

AUD—Australian dollar.

EUR—euro.

GBP—British pound.

JPY—Japanese yen.

MXN—Mexican peso.

USD—U.S. dollar.

Centrally Cleared Credit Default Swaps
					Periodic
					Premium				Unrealized
					Received				Appreciation
	Termination	Notional Amount			(Paid	)1	Value		(Depreciation	)
Reference Entity	Date	(000		)	(%	)	($000	)	($000	)
Credit Protection Sold
CDX-NA-HY-S32-V1	6/20/24	USD	914		5.000		68		(1	)
CDX-NA-IG-S32-V1	6/20/24	USD	3,642,600		1.000		76,061		11,164
CDX-NA-IG-S32-V1	6/20/29	USD	900		1.000		(2	)	6
							76,127		11,169
Credit Protection Purchased
CDX-NA-IG-S32-V1	6/20/22	USD	2,610		(1.000	)	(53	)	—
CDX-NA-IG-S32-V1	6/20/24	USD	7,399		(1.000	)	(154	)	8
iTraxx Europe-S31-V1	6/20/24	EUR	7,230		(1.000	)	(197	)	(35	)
							(404	)	(27	)
							75,723		11,142

1 Periodic premium received/paid quarterly.

EUR—euro.

USD—U.S. dollar.

85

Long-Term Investment-Grade Fund

Over-the-Counter Credit Default Swaps
									Remaining
					Periodic				Up-Front
					Premium				Premium
			Notional		Received				Received		Unrealized		Unrealized
Reference	Termination		Amount		(Paid	)2	Value		(Paid	)	Appreciation		(Depreciation	)
Entity	Date	Counterparty	($000	)	(%	)	($000	)	($000	)	($000	)	($000	)
Credit Protection Sold/Moody’s Rating
Metlife Inc./A3	12/20/21	GSI	10,000		1.000		175		(15	)	160		—
Credit Protection Purchased
Bank of China Ltd.	12/20/21	BNPSW	300		(1.000	)	(6	)	—		—		(6	)
Bayerische Motoren Werke AG	6/20/24	BARC	9,1301		(1.000	)	(269	)	150		—		(119	)
Federative Republic of Brazil	6/20/24	JPMC	3,680		(1.000	)	42		(135	)	—		(93	)
Federative Republic of Brazil	12/20/25	BOANA	315		(1.000	)	10		(58	)	—		(48	)
Federative Republic of Brazil	12/20/25	GSCM	315		(1.000	)	10		(54	)	—		(44	)
LafargeHolcim Ltd.	6/20/24	BNPSW	3,7251		(1.000	)	(83	)	16		—		(67	)
Ministry of Finance Malaysia	6/20/24	JPMC	3,500		(1.000	)	(87	)	75		—		(12	)
Republic of Chile	6/20/24	BNPSW	3,000		(1.000	)	(95	)	87		—		(8	)
Republic of Colombia	6/20/24	BNPSW	6,000		(1.000	)	(46	)	6		—		(40	)
Republic of Peru	6/20/24	CITNA	4,650		(1.000	)	(115	)	96		—		(19	)
Societe Generale SA	6/20/24	JPMC	8751		(1.000	)	(16	)	5		—		(11	)
							(655	)	188		—		(467	)
							(480	)	173		160		(467	)

The notional amount represents the maximum potential amount the fund could be required to pay as a seller of credit protection if the reference entity was subject to a credit event.

1 Notional amount denominated in euro.

2 Periodic premium received/paid quarterly.

BARC—Barclays Bank plc.

BNPSW—BNP Paribas.

BOANA—Bank of America, N.A.

CITNA—Citibank, N.A.

GSCM—Goldman Sachs Bank USA.

GSI—Goldman Sachs International.

JPMC—JPMorgan Chase Bank, N.A.

86

Long-Term Investment-Grade Fund

Centrally Cleared Interest Rate Swaps
			Fixed	Floating
			Interest	Interest
			Rate	Rate		Unrealized
	Future	Notional	Received	Received		Appreciation
	Effective	Amount	(Paid)	(Paid)	Value	(Depreciation)
Termination Date	Date	($000)	(%)	(%)	($000)	($000)
9/18/20	9/18/191	11,021	(3.000)3	0.0005	(103)	12
9/20/21	9/18/191	12,675	1.7503	(0.000)5	(35)	(28)
9/18/24	9/18/191	4,137	2.0003	(0.000)5	39	—
9/18/26	9/18/191	3,933	3.0003	(0.000)5	297	13
9/18/28	9/18/191	3,929	3.0003	(0.000)5	354	28
7/9/29	N/A	45	(1.941)3	2.3115	—	—
11/21/29	11/21/191	1,091	2.3923	(0.000)5	44	26
11/26/29	11/26/191	968	(2.050)3	0.0005	(9)	(9)
9/18/34	9/18/191	17,701	(3.250)3	0.0005	(2,731)	(271)
9/19/39	9/18/191	30,264	3.2503	(0.000)5	5,617	612
8/5/49	8/5/191	1,7282	2.7434	(0.000)6	120	67
9/20/49	9/18/191	42,132	(3.250)3	0.0005	(10,378)	(1,265)
					(6,785)	(815)

1Forward interest rate swap. In a forward interest rate swap, the fund and the counterparty agree to make periodic net payments beginning on a specified future effective date.

2Notional amount denominated in euro.

3Fixed interest payment received/paid semiannually.

4Fixed interest payment received/paid annually.

5Based on 3-month USD London Interbank Offered Rate (LIBOR) as of the most recent payment date. Floating interest payment received/paid quarterly.

6Based on 6-month Euro Interbank Offered Rate (EURIBOR) as of the most recent payment date. Floating interest payment received/ paid semiannually.

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

87

Long-Term Investment-Grade Fund

Statement of Operations

	Six Months Ended
	July 31, 2019
	($000	)
Investment Income
Income
Interest1	356,189
Total Income	356,189
Expenses
Investment Advisory Fees—Note B	1,467
The Vanguard Group—Note C
Management and Administrative—Investor Shares	3,977
Management and Administrative—Admiral Shares	6,162
Marketing and Distribution—Investor Shares	181
Marketing and Distribution—Admiral Shares	307
Custodian Fees	83
Shareholders’ Reports—Investor Shares	83
Shareholders’ Reports—Admiral Shares	40
Trustees’ Fees and Expenses	9
Total Expenses	12,309
Net Investment Income	343,880
Realized Net Gain (Loss)
Investment Securities Sold1	134,162
Futures Contracts	37,702
Options Purchased	(11	)
Options Written	442
Swap Contracts	28,790
Forward Currency Contracts	272
Foreign Currencies	443
Realized Net Gain (Loss)	201,800
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	1,518,736
Futures Contracts	4,685
Options Purchased	(72	)
Options Written	(36	)
Swap Contracts	(963	)
Forward Currency Contracts	965
Foreign Currencies	45
Change in Unrealized Appreciation (Depreciation)	1,523,360
Net Increase (Decrease) in Net Assets Resulting from Operations	2,069,040

1Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $6,156,000, $13,000, and $29,000, respectively.

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

88

Long-Term Investment-Grade Fund

Statement of Changes in Net Assets

	Six Months Ended		Year Ended
	July 31,		January 31,
	2019		2019
	($000	)	($000	)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	343,880		673,555
Realized Net Gain (Loss)	201,800		(103,190	)
Change in Unrealized Appreciation (Depreciation)	1,523,360		(780,572	)
Net Increase (Decrease) in Net Assets Resulting from Operations	2,069,040		(210,207	)
Distributions
Net Investment Income
Investor Shares	(85,681	)	(179,674	)
Admiral Shares	(272,565	)	(520,769	)
Realized Capital Gain1
Investor Shares	—		(15,039	)
Admiral Shares	—		(40,061	)
Total Distributions	(358,246	)	(755,543	)
Capital Share Transactions
Investor Shares	83,566		(200,780	)
Admiral Shares	234,369		1,589,227
Net Increase (Decrease) from Capital Share Transactions	317,935		1,388,447
Total Increase (Decrease)	2,028,729		422,697
Net Assets
Beginning of Period	16,918,583		16,495,886
End of Period	18,947,312		16,918,583

1Includes fiscal 2020 and 2019 short-term gain distributions totaling $0 and $3,058,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.

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

89

Long-Term Investment-Grade Fund

Financial Highlights

Investor Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019		2019		2018		2017		2016		2015
Net Asset Value, Beginning of Period	$9.79		$10.40		$10.06		$10.00		$11.34		$10.02
Investment Operations
Net Investment Income	.1931		.3971		.4051		.416		.430		.453
Net Realized and Unrealized Gain (Loss) on Investments	.989		(.560	)	.520		.260		(1.148	)	1.487
Total from Investment Operations	1.182		(.163	)	.925		.676		(.718	)	1.940
Distributions
Dividends from Net Investment Income	(.202	)	(.413	)	(.421	)	(.435	)	(.446	)	(.466	)
Distributions from Realized Capital Gains	—		(.034	)	(.164	)	(.181	)	(.176	)	(.154	)
Total Distributions	(.202	)	(.447	)	(.585	)	(.616	)	(.622	)	(.620	)
Net Asset Value, End of Period	$10.77		$9.79		$10.40		$10.06		$10.00		$11.34
Total Return2	12.18%		-1.45%		9.28%		6.71%		-6.33%		19.98%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$4,599		$4,098		$4,570		$4,069		$3,860		$4,714
Ratio of Total Expenses to Average Net Assets	0.22%		0.22%		0.22%		0.22%		0.21%		0.22%
Ratio of Net Investment Income to Average Net Assets	3.82%		4.08%		3.87%		3.92%		4.18%		4.30%
Portfolio Turnover Rate	38%3		32%3		27%		24%		35%4		21%

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

1Calculated based on average shares outstanding.

2Total 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.

3Includes 0% attributable to mortgage-dollar-roll activity.

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

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

90

Long-Term Investment-Grade Fund

Financial Highlights

Admiral Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019		2019		2018		2017		2016		2015
Net Asset Value, Beginning of Period	$9.79		$10.40		$10.06		$10.00		$11.34		$10.02
Investment Operations
Net Investment Income	.198	1	.407	1	.415	1	.426		.440		.463
Net Realized and Unrealized Gain (Loss) on Investments	.989		(.560	)	.520		.260		(1.148	)	1.487
Total from Investment Operations	1.187		(.153	)	.935		.686		(.708	)	1.950
Distributions
Dividends from Net Investment Income	(.207	)	(.423	)	(.431	)	(.445	)	(.456	)	(.476	)
Distributions from Realized Capital Gains	—		(.034	)	(.164	)	(.181	)	(.176	)	(.154	)
Total Distributions	(.207	)	(.457	)	(.595	)	(.626	)	(.632	)	(.630	)
Net Asset Value, End of Period	$10.77		$9.79		$10.40		$10.06		$10.00		$11.34
Total Return2	12.24%		-1.35%		9.39%		6.82%		-6.23%		20.10%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$14,348		$12,820		$11,925		$10,336		$9,946		$12,342
Ratio of Total Expenses to Average Net Assets	0.12%		0.12%		0.12%		0.11%		0.12%		0.12%
Ratio of Net Investment Income to Average Net Assets	3.92%		4.18%		3.97%		4.03%		4.27%		4.40%
Portfolio Turnover Rate	38%3		32%3		27%		24%		35%4		21%

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

1Calculated based on average shares outstanding.

2Total 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.

3Includes 0% attributable to mortgage-dollar-roll activity.

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

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

91

Long-Term Investment-Grade Fund

Notes to Financial Statements

Vanguard Long-Term Investment-Grade Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. Certain of the fund’s investments are in corporate debt instruments; the issuers’ abilities to meet their obligations may be affected by economic developments in their respective industries. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. To minimize the currency risk associated with investment in securities denominated in currencies other than the U.S. dollar, the fund attempts to hedge its currency exposures. 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.

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. Bonds and temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. 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.

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

3. Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund

92

Long-Term Investment-Grade Fund

trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

During the six months ended July 31, 2019, the fund’s average investments in long and short futures contracts represented 5% and 2% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any assets pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized forward currency contract gains (losses).

During the six months ended July 31, 2019, the fund’s average investment in forward currency contracts represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.

93

Long-Term Investment-Grade Fund

5. Swap Contracts: The fund invests in credit default swaps to adjust the overall credit risk of the fund or to actively overweight or underweight credit risk to a specific issuer or group of issuers. The fund may sell credit protection through credit default swaps to simulate investments in long positions that are either unavailable or considered to be less attractively priced in the bond market. The fund may purchase credit protection through credit default swaps to reduce credit exposure to a given issuer or issuers. Under the terms of the swaps, an up-front payment may be exchanged between the seller and buyer. In addition, the seller of the credit protection receives a periodic payment of premium from the buyer that is a fixed percentage applied to a notional amount. If, for example, the reference entity is subject to a credit event (such as bankruptcy, failure to pay, or obligation acceleration) during the term of the swap, the seller agrees to either physically settle or cash settle the swap contract. If the swap is physically settled, the seller agrees to pay the buyer an amount equal to the notional amount and take delivery of a debt instrument of the reference issuer with a par amount equal to such notional amount. If the swap is cash settled, the seller agrees to pay the buyer the difference between the notional amount and the final price for the relevant debt instrument, as determined either in a market auction or pursuant to a pre-agreed-upon valuation procedure.

The fund enters into interest rate swap transactions to adjust the fund’s sensitivity to changes in interest rates and maintain the ability to generate income at prevailing market rates. Under the terms of the swaps, one party pays the other an amount that is a fixed percentage rate applied to a notional amount. In return, the counterparty agrees to pay a floating rate, which is reset periodically based on short-term interest rates, applied to the same notional amount.

The notional amounts of swap contracts are not recorded in the Statement of Net Assets. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the seller of credit protection is required to take delivery (or, in a cash settled swap, pay the settlement amount determined) upon occurrence of a credit event, periodic payments are made, or the swap terminates, at which time realized gain (loss) is recorded. The net premium to be received or paid by the fund under swap contracts is accrued daily and recorded as realized gain (loss) over the life of the contract.

The primary risk associated with selling credit protection is that, upon the occurrence of a defined credit event, the market value of the debt instrument received by the fund (or, in a cash settled swap, the debt instruments used to determine the settlement payment by the fund) will be significantly less than the amount paid by the fund and, in a physically settled swap, the fund may receive an illiquid debt instrument. A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position

94

Long-Term Investment-Grade Fund

at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

The fund enters into centrally cleared interest rate and credit default swaps to achieve the same objectives specified with respect to the equivalent over-the-counter swaps but with less counterparty risk because a regulated clearinghouse is the counterparty instead of the clearing broker or executing broker. The clearinghouse imposes initial margin requirements to secure the fund’s performance, and requires daily settlement of variation margin representing changes in the market value of each contract. To further mitigate counterparty risk, the fund trades with a diverse group of prequalified executing brokers; monitors the financial strength of its clearing brokers, executing brokers, and clearinghouse; and has entered into agreements with its clearing brokers and executing brokers.

During the six months ended July 31, 2019, the fund’s average amounts of investments in credit protection sold and credit protection purchased represented 18% and less than 1% of net assets, respectively, based on the average of notional amounts at each quarter-end during the period. The average amount of investments in interest rate swaps represented 1% of net assets, based on the average of notional amounts at each quarter-end during the period.

6. Options: The fund invests in options contracts on futures and swaps to adjust its exposure to the underlying investments. The primary risk associated with purchasing options is that the value of the underlying investments may move in such a way that the option is out-of-the-money (the exercise price of the option exceeds the value of the underlying investment), the position is worthless at expiration, and the fund loses the premium paid. The primary risk associated with selling options is that the value of the underlying investments may move in such a way that the option is in-the-money (the exercise price of the option exceeds the value of the underlying investment), the counterparty exercises the option, and the fund loses an amount equal to the market value of the option written less the premium received.

The fund invests in options on futures, which are exchange-traded. Counterparty risk involving exchange-traded options on futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades options on futures on an exchange, monitors the financial strength of its clearing brokers and clearinghouses, and has entered into clearing agreements with its clearing brokers.

The fund invests in options on swaps (swaptions), which are transacted over-the-counter (OTC) and not on an exchange. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return of a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. Unlike exchange-traded options, which are standardized with respect to the underlying instrument, expiration date, contract size, and strike price, the terms of OTC options generally are established through negotiation with the other party to the option contract. Although this type of arrangement allows the purchaser or writer greater flexibility to tailor an option to its needs, OTC options generally involve greater credit risk than exchange-traded options. Credit risk involves the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund mitigates its counterparty risk by entering into swaptions with a diverse group of prequalified counterparties and monitoring their financial strength.

95

Long-Term Investment-Grade Fund

Options on futures contracts are valued at their quoted daily settlement prices. Swaptions are valued daily based on market quotations received from independent pricing services or recognized dealers. The premium paid for a purchased option is recorded in the Statement of Net Assets as an asset that is subsequently adjusted daily to the current market value of the option purchased. The premium received for a written option is recorded in the Statement of Net Assets as an asset with an equal liability that is subsequently adjusted daily to the current market value of the option written. Fluctuations in the value of the options are recorded in the Statement of Operations as unrealized appreciation (depreciation) until expired, closed, or exercised, at which time realized gains (losses) are recognized.

During the six months ended July 31, 2019, the fund’s average value of investments in options purchased and options written each represented less than 1% of net assets, respectively, based on the average market values at each quarter-end during the period.

7. To Be Announced (TBA) Transactions: A TBA transaction is an agreement to buy or sell mortgage-backed securities with agreed-upon characteristics (face amount, coupon, maturity) for settlement at a future date. The fund may be a seller of TBA transactions to reduce its exposure to the mortgage-backed securities market or in order to sell mortgage-backed securities it owns under delayed-delivery arrangements. When the fund is a buyer of TBA transactions, it maintains cash or short-term investments in an amount sufficient to meet the purchase price at the settlement date of the TBA transaction. The primary risk associated with TBA transactions is that a counterparty may default on its obligations. The fund mitigates its counterparty risk by, among other things, performing a credit analysis of counterparties, allocating transactions among numerous counterparties, and monitoring its exposure to each counterparty. The fund may also enter into a Master Securities Forward Transaction Agreement (MSFTA) with certain counterparties and require them to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. Under an MSFTA, upon a counterparty default (including bankruptcy), the fund may terminate any TBA transactions with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements.

8. Mortgage Dollar Rolls: The fund enters into mortgage-dollar-roll transactions, in which the fund sells mortgage-backed securities to a dealer and simultaneously agrees to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are typically invested in high-quality short-term fixed income securities. The fund forgoes principal and interest paid on the securities sold, and is compensated by interest earned on the proceeds of the sale and by a lower price on the securities to be repurchased. The fund accounts for mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the fund’s portfolio turnover rate. Amounts to be received or paid in connection with open mortgage dollar rolls are included in Receivables for Investment Securities Sold or Payables for Investment Securities Purchased in the Statement of Net Assets.

9. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements

96

Long-Term Investment-Grade Fund

with its counterparties. The master repurchase agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.

10. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2016—2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

11. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

12. Credit Facility: 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 that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

13. Other: Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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.   Wellington Management Company LLP provides investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor.

Vanguard provides investment advisory services to a portion of the fund as described below; the fund paid Vanguard advisory fees of $111,000 for the six months ended July 31, 2019.

For the six months ended July 31, 2019, the aggregate investment advisory fee paid to all advisors represented an effective annual rate of 0.02% of the fund’s average net assets.

97

Long-Term Investment-Grade Fund

C.   In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, distribution, and cash management services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $891,000, representing 0.00% of the fund’s net assets and 0.36% of Vanguard’s capitalization. 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 Statement of Net Assets.

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1		Level 2		Level 3
Investments	($000	)	($000	)	($000	)
U.S. Government and Agency Obligations	—		1,638,530		—
Asset-Backed/Commercial Mortgage-Backed Securities	—		128,921		—
Corporate Bonds	—		14,184,157		—
Sovereign Bonds	—		168,904		—
Taxable Municipal Bonds	—		1,847,383		—
Temporary Cash Investments	668,249		435,500		—
Option Purchased	—		274		—
Option Written	—		(190	)	—
Futures Contracts—Assets1	7,858		—		—
Futures Contracts—Liabilities1	(532	)	—		—
Forward Currency Contracts—Assets	—		928		—
Forward Currency Contracts—Liabilities	—		(63	)	—
Swap Contracts—Assets	3221		160		—
Swap Contracts—Liabilities	(4,676	)1	(467	)	—
Total	671,221		18,404,037		—

1 Represents variation margin on the last day of the reporting period.

98

Long-Term Investment-Grade Fund

E.   At July 31, 2019, the fair values of derivatives were reflected in the Statement of Net Assets as follows:

	Interest Rate		Currency		Credit
	Contracts		Contracts		Contracts		Total
Statement of Net Assets Caption	($000	)	($000	)	($000	)	($000	)
Options Purchased	268		—		6		274
Variation Margin Receivable—Futures Contracts	7,858		—		—		7,858
Variation Margin Receivable—CC Swap Contracts	314		—		8		322
Unrealized Appreciation—Forward Currency Contracts	—		928		—		928
Unrealized Appreciation—OTC Swap Contracts	—		—		160		160
Total Assets	8,440		928		174		9,542
Options Written	(173	)	—		(17	)	(190	)
Variation Margin Payable—Futures Contracts	(532	)	—		—		(532	)
Variation Margin Payable—CC Swap Contracts	(714	)	—		(3,962	)	(4,676	)
Unrealized Depreciation—Forward Currency Contracts	—		(63	)	—		(63	)
Unrealized Depreciation—OTC Swap Contracts	—		—		(467	)	(467	)
Total Liabilities	(1,419	)	(63	)	(4,446	)	(5,928	)

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended July 31, 2019, were:

	Interest Rate		Currency		Credit
	Contracts		Contracts		Contracts		Total
Realized Net Gain (Loss) on Derivatives	($000	)	($000	)	($000	)	($000	)
Futures Contracts	37,702		—		—		37,702
Options Purchased	(1	)	—		(10	)	(11	)
Options Written	348		—		94		442
Swap Contracts	(4,387	)	—		33,177		28,790
Forward Currency Contracts	—		272		—		272
Realized Net Gain (Loss) on Derivatives	33,662		272		33,261		67,195
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts	4,685		—		—		4,685
Options Purchased	(71	)	—		(1	)	(72	)
Options Written	(53	)	—		17		(36	)
Swap Contracts	(892	)	—		(71	)	(963	)
Forward Currency Contracts	—		965		—		965
Change in Unrealized Appreciation (Depreciation) on Derivatives	3,669		965		(55	)	4,579

99

Long-Term Investment-Grade Fund

F.   As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000	)
Tax Cost	16,968,310
Gross Unrealized Appreciation	2,146,493
Gross Unrealized Depreciation	(12,568	)
Net Unrealized Appreciation (Depreciation)	2,133,925

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $103,547,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carry-forward balance above.

G.   During the six months ended July 31, 2019, the fund purchased $2,546,557,000 of investment securities and sold $2,707,086,000 of investment securities, other than U.S. government securities and temporary cash investments. Purchases and sales of U.S. government securities were $752,213,000 and $553,441,000, respectively.

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

	Six Months Ended				Year Ended
	July 31, 2019				January 31, 2019
	Amount		Shares		Amount		Shares
	($000	)	(000	)	($000	)	(000	)
Investor Shares
Issued	323,836		31,948		602,780		61,987
Issued in Lieu of Cash Distributions	82,383		8,000		180,741		18,566
Redeemed	(322,653	)	(31,585	)	(984,301	)	(101,375	)
Net Increase (Decrease)—Investor Shares	83,566		8,363		(200,780	)	(20,822	)
Admiral Shares
Issued	1,333,474		129,321		2,988,931		307,348
Issued in Lieu of Cash Distributions	223,896		21,738		452,831		46,505
Redeemed	(1,323,001	)	(128,456	)	(1,852,535	)	(190,934	)
Net Increase (Decrease)—Admiral Shares	234,369		22,603		1,589,227		162,919

I.    Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

100

Trustees Approve Advisory Arrangements

The board of trustees of Vanguard Short-Term Investment-Grade Fund, Vanguard Intermediate-Term Investment-Grade Fund, and Vanguard Long-Term Investment-Grade Fund has renewed each fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), through its Fixed Income Group. The board also has renewed the investment advisory arrangement between Vanguard Long-Term Investment-Grade Fund and Wellington Management Company LLP (Wellington Management). The board determined that renewing each fund’s advisory arrangement(s) was in the best interests of the fund and its shareholders.

The board based its decisions upon an evaluation of each 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 advisors 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 monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.

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

Nature, extent, and quality of services

The board reviewed the quality of each fund’s investment management services over both the short and long term and took into account the organizational depth and stability of each advisor. The board considered the following:

Vanguard. Vanguard has been managing investments for more than four decades and has advised the Short-Term Investment-Grade and Intermediate-Term Investment-Grade Funds since their inceptions, and a portion of the Long-Term Investment-Grade Fund since 2013. The Fixed Income Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth.

Wellington Management. Founded in 1928, Wellington Management is among the nation’s oldest and most respected institutional investment managers. The portfolio manager has the support of a deep and experienced team of investment-grade credit research analysts. The team conducts independent credit analysis on individual issuers of bonds considered for the fund. The portfolio manager draws upon the sector experience of these analysts and the broader fixed income team at Wellington Management to manage the fund’s duration, sector, quality, and curve positioning. The firm has managed the Long-Term Investment-Grade Fund since its inception.

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

101

Investment performance

The board considered the short- and long-term performance of each 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 arrangements should continue.

Cost

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

The board did not consider the profitability of Wellington Management in determining whether to approve the advisory fee for the Long-Term Investment-Grade Fund because Wellington Management is independent of Vanguard and the advisory fee is the result of arm’s-length negotiations. The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.

The benefit of economies of scale

The board concluded that the Long-Term Investment-Grade Fund shareholders benefit from economies of scale because of the breakpoints in the fund’s advisory fee schedule with Wellington Management. The breakpoints reduce the effective rate of the fee as the fund’s assets increase.

The board also concluded that the Short-Term Investment-Grade, Intermediate-Term Investment-Grade, and Long-Term Investment-Grade Funds’ arrangements with Vanguard ensure that the funds will realize economies of scale as they grow, with the cost to shareholders declining as fund assets increase.

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

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P.O. Box 2600

Valley Forge, PA 19482-2600

Connect with Vanguard® > vanguard.com

Fund Information > 800-662-7447

Direct Investor Account Services > 800-662-2739

Institutional Investor Services > 800-523-1036

Text Telephone for People

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, sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or sec.gov.

You can review 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.

© 2019 The Vanguard Group, Inc.

All rights reserved.

Vanguard Marketing Corporation, Distributor.

Q392 092019

Semiannual Report | July 31, 2019

Vanguard Ultra-Short-Term Bond Fund

See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.

Important information about access to shareholder reports

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.

If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.

You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.

Contents
About Your Fund’s Expenses	1
Financial Statements	4
Trustees Approve Advisory Arrangement	31

About Your Fund’s Expenses

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

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

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

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

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

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

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

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

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

1

Six Months Ended July 31, 2019

	Beginning	Ending	Expenses
	Account Value	Account Value	Paid During
Ultra-Short-Term Bond Fund	1/31/2019	7/31/2019	Period
Based on Actual Fund Return
Investor Shares	$1,000.00	$1,017.45	$1.00
Admiral™ Shares	1,000.00	1,018.45	0.50
Based on Hypothetical 5% Yearly Return
Investor Shares	$1,000.00	$1,023.80	$1.00
Admiral Shares	1,000.00	1,024.30	0.50

The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for that period are 0.20% for Investor Shares and 0.10% for Admiral Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (181/365).

2

Ultra-Short-Term Bond Fund

Sector Diversification

As of July 31, 2019

Asset-Backed/Commercial Mortgage-Backed	39.9	%
Finance	21.7
Foreign	6.1
Industrial	19.4
Utilities	2.5
Other	0.7
Short-Term Reserves	9.7

The table reflects the fund’s market exposure. The agency and mortgage-backed securities sectors may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government.

3

Ultra-Short-Term Bond Fund

Financial Statements (unaudited)

Statement of Net Assets

As of July 31, 2019

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.

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
Asset-Backed/Commercial Mortgage-Backed Securities (40.2%)
1	Ally Auto Receivables Trust 2017-5	2.220%	10/17/22	1,600		1,598
1	Ally Master Owner Trust Series 2017-3	2.040%	6/15/22	4,850		4,836
1	American Express Credit Account Master Trust 2017-1	2.100%	9/15/22	8,586		8,568
1	AmeriCredit Automobile Receivables Trust 2016-2	3.650%	5/9/22	70		71
1	AmeriCredit Automobile Receivables Trust 2016-4	1.530%	7/8/21	48		48
1	AmeriCredit Automobile Receivables Trust 2017-4	2.040%	7/18/22	11,597		11,575
1,2	ARI Fleet Lease Trust 2017-A	1.910%	4/15/26	2,758		2,752
1,2	ARI Fleet Lease Trust 2018-B	3.220%	8/16/27	7,000		7,058
1,2	ARL Second LLC 2014-1A	2.920%	6/15/44	191		192
1,2	Avis Budget Rental Car Funding AESOP LLC 2014-2A	2.500%	2/20/21	42,235		42,217
1,2	Avis Budget Rental Car Funding AESOP LLC 2015-1A	2.500%	7/20/21	15,748		15,749
1,2	Avis Budget Rental Car Funding AESOP LLC 2015-2A	2.630%	12/20/21	11,625		11,644
1	BMW Vehicle Lease Trust 2017-2	2.070%	10/20/20	4,171		4,168
1	BMW Vehicle Lease Trust 2019-1	2.840%	11/22/21	21,000		21,187
1	BMW Vehicle Lease Trust 2019-1	2.920%	8/22/22	6,500		6,567
1,3	Brazos Higher Education Authority Inc. Series 2011-1, 3M USD LIBOR + 0.800%	3.321%	2/25/30	110		111
1,2	California Republic Auto Receivables Trust 2015-4	2.580%	6/15/21	22		22
1	California Republic Auto Receivables Trust 2016-2	1.830%	12/15/21	134		133
1	California Republic Auto Receivables Trust 2018-1	2.860%	3/15/21	8,472		8,473
1	California Republic Auto Receivables Trust 2018-1	3.140%	8/15/22	17,000		17,064
1,2	Canadian Pacer Auto Receivables Trust A Series 2017	2.050%	3/19/21	3,697		3,691
1,2	Canadian Pacer Auto Receivables Trust A Series 2018	3.000%	6/21/21	8,003		8,032
1,2	Canadian Pacer Auto Receivables Trust A Series 2019	2.780%	3/21/22	30,000		30,125
1	Capital Auto Receivables Asset Trust 2016-3	2.350%	9/20/21	70		70
1	Capital Auto Receivables Asset Trust 2016-3	2.650%	1/20/24	40		40
1,2	Capital Auto Receivables Asset Trust 2017-1	2.020%	8/20/21	4,464		4,457

4

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
1,2	Capital Auto Receivables Asset Trust 2018-2	3.270%	6/20/23	15,000		15,097
1	CarMax Auto Owner Trust 2015-3	2.280%	4/15/21	73		73
1	CarMax Auto Owner Trust 2015-3	2.680%	6/15/21	95		95
1	CarMax Auto Owner Trust 2016-1	1.610%	11/16/20	57		57
1	CarMax Auto Owner Trust 2016-3	1.390%	5/17/21	1,450		1,446
1	CarMax Auto Owner Trust 2018-4	3.110%	2/15/22	20,592		20,682
1,2	Chesapeake Funding II LLC 2017-2A	1.990%	5/15/29	3,792		3,783
1,2	Chesapeake Funding II LLC 2017-3A	1.910%	8/15/29	10,303		10,266
1,2	Chesapeake Funding II LLC 2017-4A	2.120%	11/15/29	23,150		23,086
1,2	Chesapeake Funding II LLC 2018-1	3.040%	4/15/30	12,129		12,228
1,2	Chesapeake Funding II LLC 2018-2A	3.230%	8/15/30	22,330		22,591
1,2	Chesapeake Funding II LLC 2019-1	2.940%	4/15/31	25,762		26,049
1,2	Chrysler Capital Auto Receivables Trust 2015-BA	3.260%	4/15/21	275		276
1,2	Chrysler Capital Auto Receivables Trust 2016-AA	2.880%	6/15/22	50		50
1,2	Chrysler Capital Auto Receivables Trust 2016-AA	4.220%	2/15/23	570		576
1,2	Chrysler Capital Auto Receivables Trust 2016-BA	1.640%	7/15/21	5		5
1	CNH Equipment Trust 2019-A	2.960%	5/16/22	6,000		6,030
1	COMM 2014-CCRE14 Mortgage Trust	3.147%	2/10/47	34		34
1	COMM 2015-CCRE25 Mortgage Trust	1.737%	8/10/48	113		113
1,2	Daimler Trucks Retail Trust 2018-1	2.850%	7/15/21	16,670		16,698
1,2	Daimler Trucks Retail Trust 2019-1	2.770%	4/15/21	37,000		37,004
1,2	Dell Equipment Finance Trust 2018-1	2.970%	10/22/20	2,928		2,935
1,2	Dell Equipment Finance Trust 2018-1	3.180%	6/22/23	3,990		4,028
1,2	Dell Equipment Finance Trust 2018-2	3.160%	2/22/21	6,924		6,956
1,2	Dell Equipment Finance Trust 2019-1	2.780%	8/23/21	18,000		18,080
1,2	DLL Securitization Trust Series 2018-1	2.810%	11/17/20	7,166		7,168
1,2	DLL Securitization Trust Series 2018-A2	3.140%	10/20/20	26,472		26,514
1,2	DLL Securitization Trust Series 2019-DA1	2.790%	11/22/21	28,000		28,079
§,1,2	DLL Securitization Trust Series 2019-MA2	2.270%	5/20/22	50,000		49,996
1,2	Drive Auto Receivables Trust 2015-CA	4.200%	9/15/21	44		44
1,2	Drive Auto Receivables Trust 2016-BA	4.530%	8/15/23	2,066		2,092
1,2	Drive Auto Receivables Trust 2016-C	3.020%	11/15/21	1,863		1,864
1,2	Drive Auto Receivables Trust 2016-C	4.180%	3/15/24	1,240		1,261
1	Drive Auto Receivables Trust 2017-3	2.800%	7/15/22	4,616		4,621
1	Drive Auto Receivables Trust 2018-2	3.220%	4/15/22	2,270		2,274
1	Drive Auto Receivables Trust 2018-2	3.630%	8/15/24	4,750		4,783
1	Drive Auto Receivables Trust 2018-3	3.010%	11/15/21	4,663		4,664
1	Drive Auto Receivables Trust 2018-3	3.370%	9/15/22	8,000		8,020
1	Drive Auto Receivables Trust 2018-4	3.040%	11/15/21	6,842		6,848
1	Drive Auto Receivables Trust 2018-5	3.340%	10/15/22	46,275		46,502
1	Drive Auto Receivables Trust 2018-5	3.680%	7/15/23	5,550		5,642
1	Drive Auto Receivables Trust 2019-1	3.080%	9/15/21	7,238		7,249
1	Drive Auto Receivables Trust 2019-2	3.040%	3/15/23	5,890		5,936
1	Drive Auto Receivables Trust 2019-2	3.170%	11/15/23	18,000		18,231
1	Drive Auto Receivables Trust 2019-3	2.630%	9/15/22	14,000		14,008
1,2	DT Auto Owner Trust 2018-3	3.020%	2/15/22	14,642		14,668
1,2	DT Auto Owner Trust 2019-2A	2.850%	9/15/22	12,647		12,677
§,1,2	DT Auto Owner Trust 2019-3	2.550%	8/15/22	14,000		14,000
1,2	Enterprise Fleet Financing LLC Series 2016-2	1.740%	2/22/22	112		112

5

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
1,2	Enterprise Fleet Financing LLC Series 2017-1	2.130%	7/20/22	798		797
1,2	Enterprise Fleet Financing LLC Series 2017-2	1.970%	1/20/23	11,976		11,960
1,2	Enterprise Fleet Financing LLC Series 2017-3	2.130%	5/22/23	6,748		6,735
1,2	Enterprise Fleet Financing LLC Series 2018-1	2.870%	10/20/23	11,342		11,381
1,2	Enterprise Fleet Financing LLC Series 2018-3	3.380%	5/20/24	12,770		12,907
1,2	Enterprise Fleet Financing LLC Series 2019-1	2.980%	10/22/24	10,800		10,911
1,3,4	Fannie Mae Connecticut Avenue Securities 2016-C04, 1M USD LIBOR + 1.450%	3.716%	1/25/29	60		60
1,2,3,4	Fannie Mae Connecticut Avenue Securities 2019-R03, 1M USD LIBOR + 0.750%	3.016%	9/25/31	11,037		11,049
1,2,3,4	Fannie Mae Connecticut Avenue Securities 2019-R04, 1M USD LIBOR + 0.750%	3.016%	6/25/39	24,418		24,452
1,2,3,4	Fannie Mae Connecticut Avenue Securities 2019-R05, 1M USD LIBOR + 0.750%	3.016%	7/25/39	14,900		14,900
1	Fifth Third Auto Trust 2019-1	2.660%	5/16/22	22,000		22,077
1,3	First National Master Note Trust 2017-2, 1M USD LIBOR + 0.440%	2.765%	10/16/23	250		250
1,2	Flagship Credit Auto Trust 2017-1	2.830%	3/15/23	2,360		2,365
1,2	Flagship Credit Auto Trust 2017-4	2.070%	4/15/22	6,170		6,156
1,2	Flagship Credit Auto Trust 2018-1	2.590%	6/15/22	9,633		9,630
1,2	Flagship Credit Auto Trust 2018-1	3.410%	5/15/23	3,839		3,881
1,2	Flagship Credit Auto Trust 2018-3	3.070%	2/15/23	10,433		10,489
1	Ford Credit Auto Lease Trust 2017-B	2.030%	12/15/20	5,804		5,800
1	Ford Credit Auto Lease Trust 2019-A	2.900%	5/15/22	16,490		16,644
1,2	Ford Credit Auto Owner Trust 2014-REV2	2.510%	4/15/26	200		200
1,2	Ford Credit Auto Owner Trust 2015-REV1	2.120%	7/15/26	32,426		32,374
1	Ford Credit Auto Owner Trust 2016-B	1.520%	8/15/21	700		698
1	Ford Credit Auto Owner Trust 2016-B	1.850%	9/15/21	360		359
1	Ford Credit Floorplan Master Owner Trust A Series 2017-1	2.070%	5/15/22	1,050		1,048
1	Ford Credit Floorplan Master Owner Trust A Series 2017-2	2.160%	9/15/22	1,030		1,028
1	Ford Credit Floorplan Master Owner Trust A Series 2017-2	2.340%	9/15/22	3,000		2,995
1,2,3,4	Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA2, 1M USD LIBOR + 0.730%	3.030%	7/25/49	13,050		13,070
1,2,3,4	Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA2, 1M USD LIBOR + 0.800%	3.066%	3/25/49	19,217		19,257
1,3,4	Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA2, 1M USD LIBOR + 2.200%	4.466%	10/25/28	38		38
1,3,4	Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA3, 1M USD LIBOR + 2.000%	4.266%	12/25/28	111		111
1,2,4	Freddie Mac Structured Agency Credit Risk Debt Notes 2018-SPI1	3.742%	2/25/48	1,241		1,252
1,2,4	Freddie Mac Structured Agency Credit Risk Debt Notes 2018-SPI2	3.817%	5/25/48	1,345		1,353
1,2,3,4	Freddie Mac Structured Agency Credit Risk Debt Notes 2019-HQA2, 1M USD LIBOR + 0.700%	2.966%	4/25/49	5,000		5,006
1	GM Financial Automobile Leasing Trust 2017-1	2.260%	8/20/20	1,800		1,800

6

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
1	GM Financial Automobile Leasing Trust 2017-2	2.020%	9/21/20	9,543		9,534
1	GM Financial Automobile Leasing Trust 2017-3	2.010%	11/20/20	467		466
1	GM Financial Automobile Leasing Trust 2017-3	2.120%	9/20/21	740		739
1	GM Financial Automobile Leasing Trust 2017-3	2.400%	9/20/21	1,230		1,229
1	GM Financial Automobile Leasing Trust 2017-3	2.730%	9/20/21	450		450
1	GM Financial Automobile Leasing Trust 2018-1	2.610%	1/20/21	18,500		18,513
1	GM Financial Automobile Leasing Trust 2018-2	3.060%	6/21/21	10,250		10,294
1	GM Financial Automobile Leasing Trust 2019-2	2.670%	6/21/21	21,500		21,562
1,2	GM Financial Consumer Automobile 2017-3	2.130%	3/16/23	1,500		1,498
1,2	GMF Floorplan Owner Revolving Trust 2017-3	2.460%	8/16/21	8,040		8,039
1,2	GMF Floorplan Owner Revolving Trust 2018-1	3.060%	3/15/22	3,250		3,260
1,2	GMF Floorplan Owner Revolving Trust 2018-1	3.250%	3/15/22	3,000		3,003
1,2	GMF Floorplan Owner Revolving Trust 2018-1	3.500%	3/15/22	4,624		4,638
1,2	Golden Credit Card Trust 2016-5A	1.600%	9/15/21	5,080		5,074
1,2	Golden Credit Card Trust 2018-1A	2.620%	1/15/23	630		634
1,2,3	Gosforth Funding 2016-1A plc, 3M USD LIBOR + 0.700%	3.218%	2/15/58	110		110
1,2,3	Gosforth Funding 2017-1A plc, 3M USD LIBOR + 0.470%	2.888%	12/19/59	8,702		8,699
1,2,3	Gosforth Funding 2018-1A plc, 3M USD LIBOR + 0.450%	2.971%	8/25/60	10,123		10,104
1,2	GreatAmerica Leasing Receivables Funding LLC Series 2019-1	2.970%	6/15/21	22,000		22,074
2	GTP Acquisition Partners I LLC	2.350%	6/15/20	425		423
1	Harley-Davidson Motorcycle Trust 2019-A	2.370%	5/15/22	15,000		15,005
1,2,3	Hertz Fleet Lease Funding LP 2016-1, 1M USD LIBOR + 1.100%	3.479%	4/10/30	304		304
1,2	Hertz Fleet Lease Funding LP 2018-1	3.230%	5/10/32	7,661		7,750
1,2	Hertz Fleet Lease Funding LP 2019-1	2.700%	1/10/33	43,500		43,765
1,2	Hertz Vehicle Financing II LP 2015-1A	2.730%	3/25/21	34,664		34,704
1,2	Hertz Vehicle Financing II LP 2015-2A	2.960%	10/25/21	40,000		40,108
1,2,3	Holmes Master Issuer plc 2018-1, 3M USD LIBOR + 0.360%	2.663%	10/15/54	9,721		9,712
1,2,3	Holmes Master Issuer plc 2018-2A, 3M USD LIBOR + 0.420%	2.723%	10/15/54	10,087		10,076
1	Honda Auto Receivables 2017-4 Owner Trust	2.210%	3/21/24	800		801
1,2	Hyundai Auto Lease Securitization Trust 2017-A	2.130%	4/15/21	6,917		6,915
1,2	Hyundai Auto Lease Securitization Trust 2017-C	2.120%	2/16/21	7,463		7,459
1,2	Hyundai Auto Lease Securitization Trust 2017-C	2.210%	9/15/21	100		100
1,2	Hyundai Auto Lease Securitization Trust 2017-C	2.460%	7/15/22	200		200
1,2	Hyundai Auto Lease Securitization Trust 2018-A	2.810%	4/15/21	15,655		15,704
1,2	Hyundai Auto Lease Securitization Trust 2018-B	3.040%	10/15/21	7,170		7,229
1,2	Hyundai Auto Lease Securitization Trust 2019-A	2.980%	7/15/22	15,000		15,156
1	John Deere Owner Trust 2016-B	1.490%	5/15/23	130		130
1,2	Kubota Credit Owner Trust 2018-1A	2.800%	2/16/21	14,162		14,184
1,2,3	Lanark Master Issuer plc 2018-1A, 3M USD LIBOR + 0.420%	2.943%	12/22/69	4,480		4,473
1,2,3	Lanark Master Issuer plc 2018-2A, 1M USD LIBOR + 0.840%	2.943%	12/22/69	18,261		18,311
1,2	Master Credit Card Trust II Series 2017-1A	2.260%	7/21/21	7,900		7,894
1	Mercedes-Benz Auto Lease Trust 2018-A	2.410%	2/16/21	8,032		8,035
1,2	MMAF Equipment Finance LLC 2018-A	2.920%	7/12/21	5,156		5,166
1,2	MMAF Equipment Finance LLC 2019-A	2.840%	1/10/22	19,250		19,329
1,2,3	Motor plc 2017-1A, 1M USD LIBOR + 0.530%	2.796%	9/25/24	6,308		6,307

7

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
1,2	Navient Student Loan Trust 2018-A	2.530%	2/18/42	19,089		19,108
1,2	Navient Student Loan Trust 2018-CA	3.010%	6/16/42	5,574		5,607
1,2	Navient Student Loan Trust 2019-A	3.030%	1/15/43	8,202		8,290
1,2,3	Navient Student Loan Trust 2019-A, 1M USD LIBOR + 0.400%	2.767%	12/15/59	27,750		27,747
1,2	Navient Student Loan Trust 2019-CA	2.820%	2/15/68	37,544		37,831
§,1,2	Navient Student Loan Trust 2019-E	2.390%	5/15/68	57,500		57,494
1,3	New Mexico Educational Assistance Foundation 2013-1, 1M USD LIBOR + 0.700%	3.102%	1/2/25	59		58
1	Nissan Auto Lease Trust 2017-A	1.910%	4/15/20	320		320
1	Nissan Auto Lease Trust 2017-A	2.040%	9/15/22	190		190
1	Nissan Auto Lease Trust 2019-A	2.710%	7/15/21	36,000		36,123
1	Nissan Auto Lease Trust 2019-B	2.270%	7/15/22	27,000		26,969
1	Nissan Auto Receivables 2016-B Owner Trust	1.320%	1/15/21	105		104
1,2,3	Pepper Residential Securities Trust 2017-A, 1M USD LIBOR + 1.100%	3.479%	3/10/58	551		551
1,2,3	Pepper Residential Securities Trust 2018-2A, 1M USD LIBOR + 0.350%	2.675%	10/13/19	30,000		29,969
1,2,3	Pepper Residential Securities Trust 2018-A, 1M USD LIBOR + 0.950%	3.319%	3/12/47	6,418		6,421
1,2,3	Pepper Residential Securities Trust 2019-1A, 1M USD LIBOR + 0.350%	2.675%	4/14/20	24,000		23,993
1,2,3	Pepper Residential Securities Trust 2019-A, 1M USD LIBOR + 0.350%	2.719%	10/12/19	15,800		15,774
1,2,3	Pepper Residential Securities Trust 2021-A1U, 1M USD LIBOR + 0.880%	3.212%	1/16/60	13,279		13,263
1,2,3	Pepper Residential Securities Trust 2022-A1U, 1M USD LIBOR + 0.350%	3.272%	6/20/60	23,626		23,573
1,2,3	Pepper Residential Securities Trust 2024-A1U, 1M USD LIBOR + 0.900%	3.200%	11/18/60	16,544		16,556
1,2,3	Permanent Master Issuer plc 2018-1A, 3M USD LIBOR + 0.380%	2.683%	7/15/58	19,700		19,704
1,2,3	PFS Financing Corp. 2017-C, 1M USD LIBOR + 0.470%	2.795%	10/15/21	12,100		12,099
1,2,3	Resimac Premier Series 2017-1A, 1M USD LIBOR + 0.950%	3.319%	9/11/48	9,928		9,935
1,2,3	Resimac Premier Series 2018-1NCA, 1M USD LIBOR + 0.850%	3.210%	12/5/59	15,935		15,955
1	Santander Drive Auto Receivables Trust 2016-3	2.460%	3/15/22	4,625		4,624
1	Santander Drive Auto Receivables Trust 2017-2	2.210%	10/15/21	695		695
1	Santander Drive Auto Receivables Trust 2017-3	2.190%	3/15/22	11,454		11,450
1	Santander Drive Auto Receivables Trust 2018-1	2.320%	8/16/21	1,623		1,623
1	Santander Drive Auto Receivables Trust 2018-2	3.030%	9/15/22	22,000		22,059
1	Santander Drive Auto Receivables Trust 2018-3	3.030%	2/15/22	24,511		24,533
1	Santander Drive Auto Receivables Trust 2018-3	3.290%	10/17/22	20,750		20,842
1	Santander Drive Auto Receivables Trust 2018-5	3.190%	3/15/22	15,000		15,063

8

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
1,2	Santander Retail Auto Lease Trust 2018-A	2.930%	5/20/21	12,600		12,662
1,2	Santander Retail Auto Lease Trust 2019-B	2.290%	4/20/22	42,000		41,948
1,2	SBA Tower Trust	3.156%	10/8/20	50,000		50,002
1,2	Securitized Term Auto Receivables Trust 2017-2A	2.040%	4/26/21	4,637		4,624
1,2	Securitized Term Auto Receivables Trust 2018-1A	2.807%	12/29/20	11,640		11,650
1,2	Securitized Term Auto Receivables Trust 2018-1A	3.068%	1/25/22	21,760		21,957
1,2	SLM Private Education Loan Trust 2013-B	1.850%	6/17/30	9		9
1,2,3	SMB Private Education Loan Trust 2019-B, 1M USD LIBOR + 0.350%	2.763%	7/15/26	17,000		17,007
1,2	SoFi Professional Loan Program 2017-A LLC	1.550%	3/26/40	175		175
1,2	SoFi Professional Loan Program 2017-B LLC	1.830%	5/25/40	397		396
1,2	SoFi Professional Loan Program 2017-C LLC	1.750%	7/25/40	911		909
1,2	SoFi Professional Loan Program 2017-D LLC	1.720%	9/25/40	943		942
1,2	SoFi Professional Loan Program 2017-E LLC	1.860%	11/26/40	5,549		5,531
1,2	SoFi Professional Loan Program 2017-F LLC	2.050%	1/25/41	3,130		3,122
1,2	SoFi Professional Loan Program 2018-A LLC	2.390%	2/25/42	29,133		29,126
1,2	SoFi Professional Loan Program 2018-B LLC	2.640%	8/25/47	21,195		21,228
1,2	SoFi Professional Loan Program 2018-C LLC	3.080%	1/25/48	28,934		29,179
1,2	SoFi Professional Loan Program 2018-D LLC	3.120%	2/25/48	21,299		21,466
1,2	SoFi Professional Loan Program 2019-A LLC	3.180%	6/15/48	20,148		20,339
1,2	SoFi Professional Loan Program 2019-B LLC	2.780%	8/17/48	40,523		40,707
1	Synchrony Credit Card Master Note Trust 2016-3	1.580%	9/15/22	4,640		4,636
1	Synchrony Credit Card Master Note Trust 2016-3	1.910%	9/15/22	3,290		3,287
1,2	TCF Auto Receivables Owner Trust 2016-PT1	1.930%	6/15/22	8,629		8,603
1,2	Tesla Auto Lease Trust 2018-A	2.320%	12/20/19	783		783
1,2	Tesla Auto Lease Trust 2018-A	2.750%	2/20/20	320		320
1,2	Tesla Auto Lease Trust 2018-A	2.970%	4/20/20	260		260
1,2	Tesla Auto Lease Trust 2018-A	3.300%	5/20/20	290		291
1,2	Tesla Auto Lease Trust 2018-B	3.710%	8/20/21	16,770		17,010
1,2	Tidewater Auto Receivables Trust 2018-AA	3.120%	7/15/22	1,838		1,841
1,2	Trillium Credit Card Trust II 2019-2A	3.038%	1/26/24	24,000		24,293
1,2	Trip Rail Master Funding LLC 2017-1A	2.709%	8/15/47	620		618
§,1	USAA Auto Owner Trust 2019-1	2.160%	7/17/23	6,890		6,890
1,2	Verizon Owner Trust 2017-1A	2.060%	9/20/21	5,294		5,289
1,2	Verizon Owner Trust 2017-2A	1.920%	12/20/21	31,522		31,470
1,2	Verizon Owner Trust 2017-3	2.060%	4/20/22	3,998		3,991
1,2	Verizon Owner Trust 2018-1	2.820%	9/20/22	24,180		24,335
1,2	Volvo Financial Equipment LLC Series 2017-1A	1.920%	3/15/21	3,299		3,291
1	Wells Fargo Commercial Mortgage Trust 2013-LC12	1.676%	7/15/46	27		26
1	WFRBS Commercial Mortgage Trust 2013-C18	3.027%	12/15/46	1		1
1,2	Wheels SPV 2 LLC 2017-1A	1.880%	4/20/26	6,234		6,216
1	World Omni Auto Receivables Trust 2015-B	2.150%	8/15/22	175		175
1	World Omni Auto Receivables Trust 2018-D	3.010%	4/15/22	27,855		27,968
1	World Omni Auto Receivables Trust 2019-B	2.630%	6/15/22	24,000		24,082
1	World Omni Automobile Lease Securitization Trust 2017-A	2.320%	8/15/22	1,530		1,529

9

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
1	World Omni Automobile Lease Securitization Trust 2018-A	2.830%	7/15/21	13,950		14,012
1	World Omni Automobile Lease Securitization Trust 2019-A	2.890%	11/15/21	20,000		20,049
1	World Omni Automobile Lease Securitization Trust 2019-A	2.940%	5/16/22	17,500		17,731
1,2	World Omni Select Auto Trust A Series 2018-1 A2	3.240%	4/15/22	16,530		16,589
Total Asset-Backed/Commercial Mortgage-Backed Securities (Cost $2,516,482)						2,525,220
Corporate Bonds (44.0%)
Finance (21.9%)
	Banking (18.4%)
2	ABN AMRO Bank NV	2.650%	1/19/21	1,784		1,787
	American Express Credit Corp.	1.700%	10/30/19	2,000		1,998
2	ANZ New Zealand Int’l Ltd.	2.200%	7/17/20	4,095		4,086
2	ANZ New Zealand Int’l Ltd.	2.125%	7/28/21	30,000		29,784
2	Australia & New Zealand Banking Group Ltd.	2.250%	12/19/19	6,605		6,603
2	Australia & New Zealand Banking Group Ltd.	4.875%	1/12/21	2,418		2,504
3	Bank of America NA, 3M USD LIBOR + 0.250%	2.771%	8/28/20	40,000		40,010
3	Bank of Montreal, 3M USD LIBOR + 0.340%	2.643%	7/13/20	40,000		40,048
	Bank of New York Mellon Corp.	4.150%	2/1/21	17,664		18,112
	Bank of New York Mellon Corp.	2.050%	5/3/21	10,780		10,742
	Bank of New York Mellon Corp.	3.550%	9/23/21	16,040		16,432
	Bank of Nova Scotia	2.228%	12/11/19	48,130		48,123
2	Banque Federative du Credit Mutuel SA	2.200%	7/20/20	40,000		39,941
2	Banque Federative du Credit Mutuel SA	2.500%	4/13/21	3,000		2,998
	BB&T Corp.	2.625%	6/29/20	8,000		8,017
	BB&T Corp.	2.050%	5/10/21	10,000		9,933
	BPCE SA	2.650%	2/3/21	3,907		3,919
	Branch Banking & Trust Co.	2.100%	1/15/20	30,000		29,963
	Capital One NA	1.850%	9/13/19	15,790		15,780
	Capital One NA	2.250%	9/13/21	1,505		1,496
	Citigroup Inc.	2.450%	1/10/20	25,805		25,810
3,5	Citigroup Inc., 3M Australian Bank Bill Rate + 1.250%	2.795%	8/7/19	20,867		14,273
	Citizens Bank NA	2.250%	10/30/20	3,500		3,490
	Citizens Bank NA	2.550%	5/13/21	13,725		13,744
	Commonwealth Bank of Australia	2.300%	3/12/20	21,490		21,481
	Credit Suisse Group Funding Guernsey Ltd.	2.750%	3/26/20	25,000		25,048
	Credit Suisse Group Funding Guernsey Ltd.	3.450%	4/16/21	2,340		2,373
2	Danske Bank A/S	1.650%	9/6/19	1,500		1,499
	Discover Bank	3.200%	8/9/21	4,017		4,067
2	DNB Bank ASA	2.125%	10/2/20	20,000		19,929
2	Federation des Caisses Desjardins du Quebec	2.250%	10/30/20	30,155		30,096
	Goldman Sachs Group Inc.	2.550%	10/23/19	13,317		13,319
	Goldman Sachs Group Inc.	2.300%	12/13/19	22,755		22,749
3,5	Goldman Sachs Group Inc., 3M Australian Bank Bill Rate + 1.200%	2.631%	8/26/20	3,450		2,373
3,5	Goldman Sachs Group Inc., 3M Australian Bank Bill Rate + 1.300%	2.857%	8/21/19	24,140		16,519
	HSBC Bank USA NA	4.875%	8/24/20	10,000		10,263
	HSBC Holdings plc	3.400%	3/8/21	10,000		10,133
	HSBC Holdings plc	2.950%	5/25/21	9,015		9,074

10

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
	HSBC USA Inc.	2.375%	11/13/19	5,550		5,548
	HSBC USA Inc.	5.000%	9/27/20	15,000		15,411
	ICICI Bank Ltd.	5.750%	11/16/20	2,800		2,895
	JPMorgan Chase & Co.	2.250%	1/23/20	35,000		34,986
	JPMorgan Chase & Co.	2.295%	8/15/21	6,500		6,488
3	JPMorgan Chase Bank NA, 3M USD LIBOR + 0.230%	2.750%	9/1/20	13,000		12,997
	KeyBank NA	1.600%	8/22/19	1,800		1,799
2	Lloyds Bank plc	5.800%	1/13/20	28,000		28,415
	Lloyds Bank plc	2.700%	8/17/20	9,013		9,041
2	Macquarie Bank Ltd.	2.850%	7/29/20	5,000		5,028
	Mitsubishi UFJ Financial Group Inc.	2.950%	3/1/21	11,513		11,586
	Mitsubishi UFJ Financial Group Inc.	2.190%	9/13/21	20,155		20,007
	Mizuho Bank Ltd.	2.340%	12/4/19	9,720		9,723
2	Mizuho Financial Group Inc.	2.632%	4/12/21	9,850		9,865
	Mizuho Financial Group Inc.	2.273%	9/13/21	6,545		6,516
	Morgan Stanley	2.650%	1/27/20	17,561		17,581
	Morgan Stanley	5.500%	7/24/20	9,900		10,187
	Morgan Stanley	5.750%	1/25/21	21,650		22,684
2	MUFG Bank Ltd.	2.300%	3/5/20	10,000		9,992
	National Australia Bank Ltd.	2.500%	1/12/21	10,000		10,031
	National Australia Bank Ltd.	2.625%	1/14/21	20,000		20,095
2	Nationwide Building Society	2.350%	1/21/20	14,831		14,817
2	Nordea Bank AB	2.125%	5/29/20	4,370		4,364
	Santander Holdings USA Inc.	2.650%	4/17/20	19,205		19,189
	Santander UK Group Holdings plc	2.875%	10/16/20	6,078		6,100
	Santander UK Group Holdings plc	3.125%	1/8/21	5,000		5,015
	Santander UK plc	2.125%	11/3/20	1,500		1,492
	Santander UK plc	2.500%	1/5/21	5,194		5,190
	Skandinaviska Enskilda Banken AB	1.875%	9/13/21	20,000		19,728
	Sumitomo Mitsui Banking Corp.	2.514%	1/17/20	20,810		20,816
	Sumitomo Mitsui Banking Corp.	2.450%	10/20/20	2,290		2,290
	Sumitomo Mitsui Financial Group Inc.	2.442%	10/19/21	4,080		4,075
	Svenska Handelsbanken AB	3.350%	5/24/21	2,098		2,133
	Toronto-Dominion Bank	1.450%	8/13/19	13,973		13,970
3	Toronto-Dominion Bank, 3M USD LIBOR + 0.280%	2.731%	6/11/20	20,000		20,025
2	UBS AG	2.450%	12/1/20	5,605		5,619
2	UBS Group Funding Jersey Ltd.	2.950%	9/24/20	30,142		30,382
2	UBS Group Funding Jersey Ltd.	3.000%	4/15/21	13,330		13,441
	US Bancorp	2.350%	1/29/21	4,250		4,257
	US Bancorp	4.125%	5/24/21	19,555		20,158
	Wells Fargo & Co.	4.600%	4/1/21	35,000		36,265
3,5	Wells Fargo & Co., 3M Australian Bank Bill Rate + 0.850%	2.493%	8/8/19	14,500		9,918
	Wells Fargo Bank NA	2.150%	12/6/19	470		470
	Wells Fargo Bank NA	2.600%	1/15/21	5,000		5,024
	Westpac Banking Corp.	1.600%	8/19/19	3,000		2,999
	Westpac Banking Corp.	2.600%	11/23/20	11,200		11,241
3	Westpac Banking Corp., 3M USD LIBOR + 0.280%	2.798%	5/15/20	10,000		10,021
	Zions Bancorp NA	3.500%	8/27/21	15,360		15,625

11

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
	Brokerage (0.2%)
	Ameriprise Financial Inc.	5.300%	3/15/20	11,570		11,781
	Finance Companies (0.3%)
	AerCap Ireland Capital DAC / AerCap Global Aviation Trust	4.625%	10/30/20	21,492		22,029
	Insurance (3.0%)
2	AIG Global Funding	2.700%	12/15/21	3,910		3,930
	Anthem Inc.	2.500%	11/21/20	25,000		25,043
	Aon plc	2.800%	3/15/21	4,001		4,018
2	Metropolitan Life Global Funding I	1.950%	9/15/21	20,000		19,810
2	Metropolitan Life Global Funding I	3.450%	10/9/21	30,000		30,699
2	Principal Life Global Funding II	2.204%	12/11/19	40,000		39,956
2	Protective Life Global Funding	2.700%	11/25/20	4,355		4,371
2	Reliance Standard Life Global Funding II	2.500%	1/15/20	42,630		42,635
2	Reliance Standard Life Global Funding II	3.050%	1/20/21	15,000		15,093
	Real Estate Investment Trusts (0.0%)
	Federal Realty Investment Trust	2.550%	1/15/21	2,700		2,705
						1,376,085
Industrial (19.6%)
	Basic Industry (1.9%)
2	Air Liquide Finance SA	1.375%	9/27/19	9,450		9,438
2	Air Liquide Finance SA	1.750%	9/27/21	15,965		15,748
	DuPont de Nemours Inc.	3.766%	11/15/20	13,000		13,226
	Eastman Chemical Co.	2.700%	1/15/20	6,881		6,885
	Eastman Chemical Co.	3.500%	12/1/21	18,332		18,702
	International Flavors & Fragrances Inc.	3.400%	9/25/20	24,000		24,194
2	Newmont Goldcorp Corp.	3.625%	6/9/21	20,748		21,097
	Nutrien Ltd.	4.875%	3/30/20	6,515		6,611
	Capital Goods (0.9%)
	Acuity Brands Lighting Inc.	6.000%	12/15/19	7,159		7,245
	Boeing Capital Corp.	4.700%	10/27/19	7,150		7,183
	Caterpillar Financial Services Corp.	1.850%	9/4/20	5,091		5,071
	CNH Industrial Capital LLC	4.375%	11/6/20	6,060		6,180
	United Technologies Corp.	4.500%	4/15/20	29,000		29,415
	Communication (2.2%)
	America Movil SAB de CV	5.000%	3/30/20	1,909		1,941
	Charter Communications Operating LLC / Charter Communications Operating Capital	3.579%	7/23/20	20,848		21,022
	Comcast Corp.	3.300%	10/1/20	48,000		48,565
	Discovery Communications LLC	2.200%	9/20/19	9,000		8,994
2	Fox Corp.	3.666%	1/25/22	30,000		30,925
	Interpublic Group of Cos. Inc.	3.500%	10/1/20	24,000		24,286
	Orange SA	1.625%	11/3/19	2,200		2,195
	Consumer Cyclical (2.3%)
2	Alimentation Couche-Tard Inc.	2.350%	12/13/19	19,000		18,981
	American Honda Finance Corp.	3.150%	1/8/21	15,000		15,180
3	American Honda Finance Corp., 3M USD LIBOR + 0.260%	2.670%	6/16/20	35,000		35,058

12

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
2	BMW US Capital LLC	2.150%	4/6/20	3,000		2,994
2	BMW US Capital LLC	3.250%	8/14/20	18,000		18,148
	General Motors Financial Co. Inc.	3.700%	11/24/20	9,000		9,106
2	Harley-Davidson Financial Services Inc.	2.400%	9/15/19	9,625		9,621
2	Harley-Davidson Financial Services Inc.	2.150%	2/26/20	8,000		7,971
2	Nissan Motor Acceptance Corp.	1.550%	9/13/19	12,500		12,487
2,3	Nissan Motor Acceptance Corp., 3M USD LIBOR + 0.520%	2.969%	9/13/19	3,578		3,580
	Toyota Motor Credit Corp.	3.050%	1/8/21	10,000		10,118
5	Volkswagen Financial Services Australia Pty Ltd.	3.250%	8/13/19	2,150		1,470
	Consumer Noncyclical (3.5%)
	AbbVie Inc.	2.300%	5/14/21	25,000		24,964
	Altria Group Inc.	9.250%	8/6/19	26,565		26,583
	Anheuser-Busch InBev Worldwide Inc.	6.875%	11/15/19	23,514		23,797
	AstraZeneca plc	2.375%	11/16/20	3,289		3,287
	Baxter International Inc.	1.700%	8/15/21	2,500		2,463
2	Bayer US Finance LLC	3.000%	10/8/21	6,220		6,261
	Becton Dickinson and Co.	2.675%	12/15/19	23,455		23,464
2	Bristol-Myers Squibb Co.	2.550%	5/14/21	20,000		20,096
2	Cigna Corp.	3.200%	9/17/20	2,000		2,015
2,3	Cigna Corp., 3M USD LIBOR + 0.350%	2.760%	3/17/20	15,000		15,007
	Constellation Brands Inc.	3.875%	11/15/19	5,000		5,019
	CVS Health Corp.	2.800%	7/20/20	22,000		22,053
	CVS Health Corp.	2.125%	6/1/21	5,000		4,967
	Mead Johnson Nutrition Co.	3.000%	11/15/20	11,770		11,857
	Reynolds American Inc.	6.875%	5/1/20	8,304		8,569
	Shire Acquisitions Investments Ireland DAC	1.900%	9/23/19	2,200		2,198
	Zimmer Biomet Holdings Inc.	2.700%	4/1/20	20,000		20,008
	Energy (6.0%)
	Apache Corp.	3.625%	2/1/21	16,096		16,266
	Boardwalk Pipelines LP	5.750%	9/15/19	17,058		17,118
	BP Capital Markets America Inc.	4.500%	10/1/20	30,000		30,756
	BP Capital Markets plc	2.315%	2/13/20	19,000		18,995
	BP Capital Markets plc	3.561%	11/1/21	6,018		6,185
	Cenovus Energy Inc.	5.700%	10/15/19	18,324		18,439
	Enbridge Energy Partners LP	4.375%	10/15/20	4,295		4,382
	Energy Transfer Operating LP	4.150%	10/1/20	20,000		20,304
	Energy Transfer Partners LP / Regency Energy Finance Corp.	5.875%	3/1/22	3,515		3,759
	Enterprise Products Operating LLC	3.500%	2/1/22	25,000		25,637
	EOG Resources Inc.	4.100%	2/1/21	20,986		21,574
	Husky Energy Inc.	7.250%	12/15/19	18,000		18,312
	Kinder Morgan Energy Partners LP	6.500%	4/1/20	4,000		4,100
	Kinder Morgan Energy Partners LP	3.500%	3/1/21	5,000		5,064
	Kinder Morgan Inc.	3.050%	12/1/19	16,550		16,566
2	Kinder Morgan Inc.	5.000%	2/15/21	1,790		1,849
	Marathon Oil Corp.	2.700%	6/1/20	24,000		24,026
	Marathon Petroleum Corp.	5.125%	3/1/21	12,535		13,028
2	Midwest Connector Capital Co. LLC	3.625%	4/1/22	5,835		5,955
	Noble Energy Inc.	4.150%	12/15/21	4,000		4,116
	Pioneer Natural Resources Co.	7.500%	1/15/20	6,974		7,126

13

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
	Plains All American Pipeline LP / PAA Finance Corp.	5.000%	2/1/21	2,035		2,090
	Sabine Pass Liquefaction LLC	5.625%	2/1/21	23,168		24,002
	Shell International Finance BV	1.875%	5/10/21	34,005		33,818
	Total Capital International SA	2.218%	7/12/21	15,000		15,003
	TransCanada PipeLines Ltd.	3.800%	10/1/20	5,710		5,778
	Williams Cos. Inc.	5.250%	3/15/20	11,675		11,861
	Technology (1.4%)
	Broadcom Corp. / Broadcom Cayman Finance Ltd.	2.375%	1/15/20	5,000		4,993
	Fidelity National Information Services Inc.	0.000%	8/19/19	20,000		19,973
	International Business Machines Corp.	2.800%	5/13/21	40,000		40,329
	KLA Corp.	3.375%	11/1/19	2,415		2,420
	NetApp Inc.	2.000%	9/27/19	15,455		15,442
	Tyco Electronics Group SA	2.350%	8/1/19	4,457		4,457
	Transportation (1.4%)
1	Burlington Northern and Santa Fe Railway Co. 1999-2 Pass Through Trust	7.570%	1/2/21	307		318
1	Continental Airlines 2001-1 Class A-1 Pass Through Trust	6.703%	6/15/21	1,841		1,950
1	Continental Airlines 2009-2 Class A Pass Through Trust	7.250%	5/10/21	1,022		1,033
1	Continental Airlines 2010-1 Class A Pass Through Trust	4.750%	7/12/22	3,030		3,106
1	Delta Air Lines 2009-1 Class A Pass Through Trust	7.750%	6/17/21	5,263		5,358
	Delta Air Lines Inc.	2.875%	3/13/20	18,000		18,007
	FedEx Corp.	3.400%	1/14/22	15,000		15,355
1	Northwest Airlines 2007-1 Class A Pass Through Trust	7.027%	5/1/21	671		678
2	Penske Truck Leasing Co. LP / PTL Finance Corp.	3.650%	7/29/21	25,000		25,491
1	Southwest Airlines Co. 2007-1 Pass Through Trust	6.650%	8/1/22	4,264		4,524
1	Southwest Airlines Co. 2007-1 Pass Through Trust	6.150%	2/1/24	9,433		9,995
1	US Airways 2001-1C Pass Through Trust	7.346%	9/20/23	2,640		2,846
1	US Airways 2012-1 Class B Pass Through Trust	8.000%	10/1/19	2,047		2,061
						1,230,690
Utilities (2.5%)
	Electric (2.5%)
	Ameren Corp.	2.700%	11/15/20	5,000		5,003
	Arizona Public Service Co.	2.200%	1/15/20	1,100		1,099
	CenterPoint Energy Inc.	3.600%	11/1/21	25,000		25,533
	Dominion Energy Inc.	5.200%	8/15/19	13,021		13,033
	Dominion Energy Inc.	2.000%	8/15/21	6,793		6,721
2	EDP Finance BV	4.125%	1/15/20	1,478		1,485
2	EDP Finance BV	5.250%	1/14/21	1,600		1,656
3,5	ETSA Utilities Finance Pty Ltd., 3M Australian Bank Bill Rate + 0.260%	1.288%	10/15/19	28,300		19,333
	Exelon Corp.	2.850%	6/15/20	5,000		5,013

14

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
	Exelon Corp.	5.150%	12/1/20	7,358		7,567
	Exelon Generation Co. LLC	2.950%	1/15/20	16,380		16,396
	Georgia Power Co.	4.250%	12/1/19	5,500		5,528
	NextEra Energy Capital Holdings Inc.	2.700%	9/15/19	11,454		11,455
	NextEra Energy Capital Holdings Inc.	2.900%	4/1/22	1,810		1,836
	NextEra Energy Capital Holdings Inc.	3.300%	8/15/22	15,190		15,484
	Pinnacle West Capital Corp.	2.250%	11/30/20	12,000		11,946
	Puget Energy Inc.	6.000%	9/1/21	7,829		8,329
						157,417
Total Corporate Bonds (Cost $2,753,637)						2,764,192
Sovereign Bonds (6.1%)
	Abu Dhabi National Energy Co. PJSC	6.250%	9/16/19	7,375		7,423
	Corp. Financiera de Desarrollo SA	4.750%	2/8/22	4,000		4,186
2	Corp. Nacional del Cobre de Chile	3.750%	11/4/20	53,022		53,862
	Empresa Nacional del Petroleo	4.750%	12/6/21	5,038		5,281
	Export-Import Bank of India	3.875%	10/2/19	5,648		5,659
	Export-Import Bank of Korea	2.250%	1/21/20	6,640		6,636
	First Abu Dhabi Bank PJSC	3.000%	8/13/19	7,000		6,998
	ICBCIL Finance Co. Ltd.	2.125%	9/29/19	2,670		2,667
	ICBCIL Finance Co. Ltd.	3.000%	4/5/20	10,000		10,008
6	Japan Treasury Discount Bill	0.000%	1/10/20	6,500,000		59,817
3	Korea Development Bank, 3M USD LIBOR + 0.550%	2.986%	3/12/21	10,000		10,026
3	Korea Development Bank, 3M USD LIBOR + 0.675%	3.094%	9/19/20	10,325		10,357
	Petronas Capital Ltd.	5.250%	8/12/19	42,283		42,313
	Republic of Croatia	6.750%	11/5/19	15,000		15,151
	Republic of Croatia	6.625%	7/14/20	17,310		17,956
	Republic of Hungary	6.250%	1/29/20	2,300		2,343
	Republic of Hungary	6.375%	3/29/21	25,978		27,621
	Republic of Indonesia	4.875%	5/5/21	5,000		5,198
	Republic of Lithuania	7.375%	2/11/20	18,100		18,557
	Republic of Panama	5.200%	1/30/20	25,600		25,918
	Republic of Romania	6.750%	2/7/22	14,040		15,398
	Sinopec Group Overseas Development 2015 Ltd.	2.500%	4/28/20	7,110		7,104
	Sinopec Group Overseas Development 2017 Ltd.	2.375%	4/12/20	10,000		9,984
	Socialist Republic of Vietnam	6.750%	1/29/20	13,539		13,786
Total Sovereign Bonds (Cost $382,974)						384,249
				Shares
Exchange-Traded Funds (0.7%)
	iShares Short Maturity Bond ETF (Cost $43,896)			875,000		44,021
Temporary Cash Investments (9.8%)
Money Market Fund (1.9%)
7	Vanguard Market Liquidity Fund	2.386%		1,160,686		116,080

15

Ultra-Short-Term Bond Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
U.S. Government and Agency Obligations (5.8%)
8	United States Treasury Bill	1.951%	5/21/20	373,050		367,077
Commercial Paper (1.3%)
9	American Electric Power Co. Inc.	2.515%	8/14/19	30,000		29,970
	Baker Hughes a GE Co. LLC	2.535%	8/16/19	16,000		15,982
9	Enbridge US Inc.	2.587%	10/11/19	9,515		9,464
9	Fidelity National Information Services Inc.	2.556%	8/16/19	7,345		7,337
9	Molson Coors Brewing Co.	2.614%	8/5/19	4,530		4,528
9	Reckitt Benckiser Treasury Services plc	2.501%	1/7/20	15,000		14,831
						82,112
Certificates of Deposit (0.8%)
	Cooperatieve Rabobank UA (New York Branch)	1.980%	10/25/19	47,735		47,700
Total Temporary Cash Investments (Cost $613,115)						612,969
Total Investments (100.8%) (Cost $6,310,104)						6,330,651
						Amount
						($000)
Other Assets and Liabilities (-0.8%)
Other Assets
Investment in Vanguard						292
Receivables for Accrued Income						30,022
Receivables for Capital Shares Issued						12,643
Variation Margin Receivable—Futures Contracts						217
Unrealized Appreciation—Forward Currency Contracts						1,539
Unrealized Appreciation—OTC Swap Contracts						80
Other Assets						182
Total Other Assets						44,975
Liabilities
Payables for Investment Securities Purchased						(84,727)
Payables for Capital Shares Redeemed						(6,050)
Payables for Distributions						(2,216)
Payables to Vanguard						(479)
Variation Margin Payable—Futures Contracts						(958)
Unrealized Depreciation—Forward Currency Contracts						(2)
Total Liabilities						(94,432)
Net Assets (100%)						6,281,194
At July 31, 2019, net assets consisted of:
						Amount
						($000)
Paid-in Capital						6,262,805
Total Distributable Earnings (Loss)						18,389
Net Assets						6,281,194

16

Ultra-Short-Term Bond Fund

	Amount
	($000	)
Investor Shares—Net Assets
Applicable to 41,614,006 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	417,066
Net Asset Value Per Share—Investor Shares	$10.02
Admiral Shares—Net Assets
Applicable to 292,525,869 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	5,864,128
Net Asset Value Per Share—Admiral Shares	$20.05

·See Note A in Notes to Financial Statements.

§Security value determined using significant unobservable inputs.

1The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.

2Security 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 July 31, 2019, the aggregate value of these securities was $2,561,009,000, representing 40.8% of net assets.

3Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.

4The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.

5Face amount denominated in Australian dollars.

6Face amount denominated in Japanese yen.

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

8Securities with a value of $1,033,000 have been segregated as initial margin for open futures contracts.

9Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration only to dealers in that program or other “accredited investors.” At July 31, 2019, the aggregate value of these securities was $66,130,000, representing 1.1% of net assets.

LIBOR—London Interbank Offered Rate.

OTC—Over-the-Counter.

17

Ultra-Short-Term Bond Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts
						($000	)
						Value and
		Number of				Unrealized
		Long (Short	)	Notional		Appreciation
	Expiration	Contracts		Amount		(Depreciation	)
Long Futures Contracts
2-Year U.S. Treasury Note	September 2019	5,150		1,104,192		2,546
Short Futures Contracts
5-Year U.S. Treasury Note	September 2019	(3,486	)	(409,796	)	(3,436	)
						(890	)

Forward Currency Contracts
	Contract					Unrealized		Unrealized
	Settlement	Contract Amount (000)				Appreciation		(Depreciation	)
Counterparty	Date		Receive		Deliver	($000	)	($000	)
State Street Bank & Trust Co.	8/15/19	AUD	129	USD	89	—		(2	)
JPMorgan Chase Bank, N.A.	8/15/19	AUD	116	USD	79	—		—
State Street Bank & Trust Co.	1/10/20	JPY	3,240	USD	30	—		—
State Street Bank & Trust Co.	8/15/19	USD	65,152	AUD	93,085	1,459		—
BNP Paribas	1/10/20	USD	60,702	JPY	6,510,000	80		—
						1,539		(2	)

AUD—Australian dollar.

JPY—Japanese yen.

USD—U.S. dollar.

At July 31, 2019, a counterparty had deposited in a segregated account securities with a value of $822,000 in connection with open forward currency contracts. After July 31, 2019, the counterparty posted additional collateral of $632,000 in connection with open forward currency contracts as of July 31, 2019.

Over-the-Counter Credit Default Swaps
									Remaining
					Periodic				Up-Front
					Premium				Premium
			Notional		Received				Received		Unrealized		Unrealized
Reference	Termination		Amount		(Paid	)1	Value		(Paid	)	Appreciation		(Depreciation	)
Entity	Date	Counterparty	($000	)	(%	)	($000	)	($000	)	($000	)	($000	)
Credit Protection Sold/Moody’s Rating
Oriental Republic of Uruguay/ Baa2	9/20/20	BOANA	21,650		1.000		190		(110	)	80		—

The notional amount represents the maximum potential amount the fund could be required to pay as a seller of credit protection if the reference entity was subject to a credit event.

1 Periodic premium received/paid quarterly.

BOANA—Bank of America, N.A.

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

18

Ultra-Short-Term Bond Fund

Statement of Operations

	Six Months Ended
	July 31, 2019
	($000)
Investment Income
Income
Dividends	615
Interest1	83,679
Total Income	84,294
Expenses
The Vanguard Group—Note B
Investment Advisory Services	396
Management and Administrative—Investor Shares	289
Management and Administrative—Admiral Shares	2,198
Marketing and Distribution—Investor Shares	23
Marketing and Distribution—Admiral Shares	155
Custodian Fees	12
Shareholders’ Reports—Investor Shares	4
Shareholders’ Reports—Admiral Shares	11
Trustees’ Fees and Expenses	1
Total Expenses	3,089
Net Investment Income	81,205
Realized Net Gain (Loss)
Investment Securities Sold1	2,282
Futures Contracts	(1,513)
Swap Contracts	108
Forward Currency Contracts	497
Foreign Currencies	(158)
Realized Net Gain (Loss)	1,216
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	22,905
Futures Contracts	(3,410)
Swap Contracts	26
Forward Currency Contracts	4,589
Foreign Currencies	(41)
Change in Unrealized Appreciation (Depreciation)	24,069
Net Increase (Decrease) in Net Assets Resulting from Operations	106,490

1Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $3,717,000, $41,000, and ($38,000), respectively. Purchases and sales are for temporary cash investment purposes.

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

19

Ultra-Short-Term Bond Fund

Statement of Changes in Net Assets

	Six Months Ended		Year Ended
	July 31,		January 31,
	2019		2019
	($000	)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	81,205		108,104
Realized Net Gain (Loss)	1,216		(1,478)
Change in Unrealized Appreciation (Depreciation)	24,069		7,373
Net Increase (Decrease) in Net Assets Resulting from Operations	106,490		113,999
Distributions
Net Investment Income
Investor Shares	(4,674	)	(5,404)
Admiral Shares	(76,958	)	(102,561)
Realized Capital Gain
Investor Shares	—		—
Admiral Shares	—		—
Total Distributions	(81,632	)	(107,965)
Capital Share Transactions
Investor Shares	106,536		130,361
Admiral Shares	596,165		1,764,475
Net Increase (Decrease) from Capital Share Transactions	702,701		1,894,836
Total Increase (Decrease)	727,559		1,900,870
Net Assets
Beginning of Period	5,553,635		3,652,765
End of Period	6,281,194		5,553,635

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

20

Ultra-Short-Term Bond Fund

Financial Highlights

Investor Shares

	Six Months								Feb. 10,
	Ended								20151 to
	July 31,		Year Ended January 31,						Jan. 31,
For a Share Outstanding Throughout Each Period	2019		2019		2018		2017		2016
Net Asset Value, Beginning of Period	$9.98		$9.97		$10.00		$9.99		$10.00
Investment Operations
Net Investment Income	.133	2	.227	2	.154	2	.106		.054
Net Realized and Unrealized Gain (Loss) on Investments	.040		.003		(.037	)	.006		(.010	)
Total from Investment Operations	.173		.230		.117		.112		.044
Distributions
Dividends from Net Investment Income	(.133	)	(.220	)	(.145	)	(.102	)	(.054	)
Distributions from Realized Capital Gains	—		—		(.002	)	—		—
Total Distributions	(.133	)	(.220	)	(.147	)	(.102	)	(.054	)
Net Asset Value, End of Period	$10.02		$9.98		$9.97		$10.00		$9.99
Total Return3	1.75%		2.34%		1.17%		1.13%		0.44%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$417		$309		$179		$131		$47
Ratio of Total Expenses to Average Net Assets	0.20%		0.20%		0.20%		0.20%		0.20%4
Ratio of Net Investment Income to Average Net Assets	2.69%		2.28%		1.54%		1.11%		0.66%4
Portfolio Turnover Rate	65%		61%		70%		81%		24%

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

1Subscription period for the fund was February 10, 2015, to February 23, 2015, during which time all assets were held in money market instruments. Performance measurement began February 24, 2015, at a net asset value of $10.00.

2Calculated based on average shares outstanding.

3Total 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.

4Annualized.

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

21

Ultra-Short-Term Bond Fund

Financial Highlights

Admiral Shares

	Six Months								Feb. 10,
	Ended								20151 to
	July 31,		Year Ended January 31,						Jan. 31,
For a Share Outstanding Throughout Each Period	2019		2019		2018		2017		2016
Net Asset Value, Beginning of Period	$19.96		$19.94		$20.00		$19.98		$20.00
Investment Operations
Net Investment Income	.277	2	.473	2	.328	2	.228		.122
Net Realized and Unrealized Gain (Loss) on Investments	.089		.008		(.077	)	.015		(.021	)
Total from Investment Operations	.366		.481		.251		.243		.101
Distributions
Dividends from Net Investment Income	(.276	)	(.461	)	(.307	)	(.223	)	(.121	)
Distributions from Realized Capital Gains	—		—		(.004	)	—		—
Total Distributions	(.276	)	(.461	)	(.311	)	(.223	)	(.121	)
Net Asset Value, End of Period	$20.05		$19.96		$19.94		$20.00		$19.98
Total Return3	1.84%		2.44%		1.26%		1.22%		0.51%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$5,864		$5,244		$3,474		$2,024		$465
Ratio of Total Expenses to Average Net Assets	0.10%		0.10%		0.10%		0.12%		0.12%4
Ratio of Net Investment Income to Average Net Assets	2.79%		2.38%		1.64%		1.19%		0.74%4
Portfolio Turnover Rate	65%		61%		70%		81%		24%

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

1Subscription period for the fund was February 10, 2015, to February 23, 2015, during which time all assets were held in money market instruments. Performance measurement began February 24, 2015, at a net asset value of $20.00.

2Calculated based on average shares outstanding.

3Total 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.

4Annualized.

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

22

Ultra-Short-Term Bond Fund

Notes to Financial Statements

Vanguard Ultra-Short-Term Bond Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. Certain of the fund’s investments are in corporate debt instruments; the issuers’ abilities to meet their obligations may be affected by economic developments in their respective industries. 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.

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. Bonds and temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral. 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. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. 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’s to calculate its net asset value may differ from quoted or published prices for the same securities.

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

3.Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and

23

Ultra-Short-Term Bond Fund

clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

During the six months ended July 31, 2019, the fund’s average investments in long and short futures contracts represented 19% and 5% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any assets pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized forward currency contract gains (losses).

During the six months ended July 31, 2019, the fund’s average investment in forward currency contracts represented 2% of net assets, based on the average of notional amounts at each quarter-end during the period.

24

Ultra-Short-Term Bond Fund

5. Swap Contracts: The fund invests in credit default swaps to adjust the overall credit risk of the fund or to actively overweight or underweight credit risk to a specific issuer or group of issuers. The fund may sell credit protection through credit default swaps to simulate investments in long positions that are either unavailable or considered to be less attractively priced in the bond market. The fund may purchase credit protection through credit default swaps to reduce credit exposure to a given issuer or issuers. Under the terms of the swaps, an up-front payment may be exchanged between the seller and buyer. In addition, the seller of the credit protection receives a periodic payment of premium from the buyer that is a fixed percentage applied to a notional amount. If, for example, the reference entity is subject to a credit event (such as bankruptcy, failure to pay, or obligation acceleration) during the term of the swap, the seller agrees to either physically settle or cash settle the swap contract. If the swap is physically settled, the seller agrees to pay the buyer an amount equal to the notional amount and take delivery of a debt instrument of the reference issuer with a par amount equal to such notional amount. If the swap is cash settled, the seller agrees to pay the buyer the difference between the notional amount and the final price for the relevant debt instrument, as determined either in a market auction or pursuant to a pre-agreed-upon valuation procedure.

The notional amounts of swap contracts are not recorded in the Statement of Net Assets. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the seller of credit protection is required to take delivery (or, in a cash settled swap, pay the settlement amount determined) upon occurrence of a credit event, periodic payments are made, or the swap terminates, at which time realized gain (loss) is recorded. The net premium to be received or paid by the fund under swap contracts is accrued daily and recorded as realized gain (loss) over the life of the contract.

The primary risk associated with selling credit protection is that, upon the occurrence of a defined credit event, the market value of the debt instrument received by the fund (or, in a cash settled swap, the debt instruments used to determine the settlement payment by the fund) will be significantly less than the amount paid by the fund and, in a physically settled swap, the fund may receive an illiquid debt instrument. A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral

25

Ultra-Short-Term Bond Fund

received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

During the six months ended July 31, 2019, the fund’s average amounts of investments in credit protection sold and credit protection purchased represented less than 1% and 0% of net assets, respectively, based on the average of notional amounts at each quarter-end during the period.

6. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2016–2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

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

8. Credit Facility: 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 that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

9. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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

B.   In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period

26

Ultra-Short-Term Bond Fund

for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $292,000, representing 0.00% of the fund’s net assets and 0.12% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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

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

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

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

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1		Level 2		Level 3
Investments	($000	)	($000	)	($000)
Asset-Backed/Commercial Mortgage-Backed Securities	—		2,396,840		128,380
Corporate Bonds	—		2,764,192		—
Sovereign Bonds	—		384,249		—
Exchange-Traded Funds	44,021		—		—
Temporary Cash Investments	116,080		496,889		—
Futures Contracts—Assets1	217		—		—
Futures Contracts—Liabilities1	(958	)	—		—
Forward Currency Contracts—Assets	—		1,539		—
Forward Currency Contracts—Liabilities	—		(2	)	—
Swap Contracts—Assets	—		80		—
Total	159,360		6,043,787		128,380

1Represents variation margin on the last day of the reporting period.

The determination of Level 3 fair value measurements is governed by documented policies and procedures adopted by the board of trustees. The board has designated a pricing review committee, as an agent of the board, to ensure the timely analysis and valuation of Level 3 securities held by the fund in accordance with established policies and procedures. The pricing review committee employs various methods for calibrating valuation approaches, including a regular review of key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity. All valuation decisions made by the pricing review committee are reported to the board on a quarterly basis for review and ratification. The board reviews the adequacy of the fair value measurement policies and procedures in place on an annual basis.

27

Ultra-Short-Term Bond Fund

The following table summarizes changes in investments valued based on Level 3 inputs during the six months ended July 31, 2019. Transfers, if any, into or out of Level 3 are recognized based on values as of the date of transfer.

	Investments in
	Asset-Backed/
	Commercial
	Mortgage-Backed
	Securities
Amount Valued Based on Level 3 Inputs	($000)
Balance as of January 31, 2019	29,999
Purchases	128,380
Transfers out of Level 3	(30,025)1
Change in Unrealized Appreciation (Depreciation)	26
Balance as of July 31, 2019	128,380

1Transfers out of Level 3 into Level 2 are because observable market data became available for these securities.

The following table provides quantitative information about the significant unobservable inputs used in fair value measurement as of July 31, 2019:

	Fair Value
	at 7/31/2019			Amount or Range/
Security Type	($000)	Valuation Technique	Unobservable Input	Weighted Avg.
Asset-Backed/Commercial Mortgage-Backed Securities	57,494	Purchase Price	Purchase Price	$99.989
	49,996	Purchase Price	Purchase Price	$99.992
	14,000	Purchase Price	Purchase Price	$99.998
	6,890	Purchase Price	Purchase Price	$100.000

Significant increases or decreases in the significant unobservable inputs used in the fair value measurement of the portfolio’s Level 3 securities, in isolation, could result in a significantly higher or lower fair value measurement at July 31, 2019.

28

Ultra-Short-Term Bond Fund

D. At July 31, 2019, the fair values of derivatives were reflected in the Statement of Net Assets as follows:

	Interest Rate		Currency		Credit
	Contracts		Contracts		Contracts		Total
Statement of Net Assets Caption	($000	)	($000	)	($000	)	($000)
Variation Margin Receivable—Futures Contracts	217		—		—		217
Unrealized Appreciation—Forward Currency Contracts	—		1,539		—		1,539
Unrealized Appreciation—OTC Swap Contracts	—		—		80		80
Total Assets	217		1,539		80		1,836
Variation Margin Payable—Futures Contracts	(958	)	—		—		(958)
Unrealized Depreciation—Forward Currency Contracts	—		(2	)	—		(2)
Total Liabilities	(958	)	(2	)	—		(960)

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended July 31, 2019, were:

	Interest Rate		Currency		Credit
	Contracts		Contracts		Contracts		Total
Realized Net Gain (Loss) on Derivatives	($000	)	($000	)	($000	)	($000)
Futures Contracts	(1,513	)	—		—		(1,513)
Swap Contracts	—		—		108		108
Forward Currency Contracts	—		497		—		497
Realized Net Gain (Loss) on Derivatives	(1,513	)	497		108		(908)
Change in Unrealized Appreciation (Depreciation) on Derivatives
Futures Contracts	(3,410	)	—		—		(3,410)
Swap Contracts	—		—		26		26
Forward Currency Contracts	—		4,589		—		4,589
Change in Unrealized Appreciation (Depreciation) on Derivatives	(3,410	)	4,589		26		1,205

E. As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000)
Tax Cost	6,304,859
Gross Unrealized Appreciation	37,075
Gross Unrealized Depreciation	(10,446)
Net Unrealized Appreciation (Depreciation)	26,629

29

Ultra-Short-Term Bond Fund

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $5,099,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

F.   During the six months ended July 31, 2019, the fund purchased $2,078,115,000 of investment securities and sold $1,358,270,000 of investment securities, other than U.S. government securities and temporary cash investments. Purchases and sales of U.S. government securities were $0 and $78,981,000, respectively.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended July 31, 2019, such purchases and sales were $507,197,000 and $343,000, respectively; these amounts are included in the purchases and sales of investment securities noted above.

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

	Six Months Ended				Year Ended
	July 31, 2019				January 31, 2019
	Amount		Shares		Amount		Shares
	($000	)	(000	)	($000	)	(000)
Investor Shares
Issued	213,602		21,322		377,693		37,908
Issued in Lieu of Cash Distributions	4,308		430		4,931		495
Redeemed	(111,374	)	(11,126	)	(252,263	)	(25,323)
Net Increase (Decrease)—Investor Shares	106,536		10,626		130,361		13,080
Admiral Shares
Issued	1,725,061		86,140		3,986,367		200,028
Issued in Lieu of Cash Distributions	64,439		3,219		85,418		4,289
Redeemed	(1,193,335	)	(59,603	)	(2,307,310	)	(115,769)
Net Increase (Decrease)—Admiral Shares	596,165		29,756		1,764,475		88,548

H. Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

30

Trustees Approve Advisory Arrangement

The board of trustees of Vanguard Ultra-Short-Term Bond Fund has renewed the fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), through its Fixed Income Group. The board determined that continuing the fund’s internalized management structure was in the best interests of the fund and its shareholders.

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

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

In addition, the board received monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.

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

Nature, extent, and quality of services

The board considered the quality of the investment management services provided to the fund since its inception in 2015 and took into account the organizational depth and stability of the advisor. The board considered that Vanguard has been managing investments for more than four decades. The Fixed Income Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth.

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

Investment performance

The board considered the fund’s performance since its inception, 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.

31

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 expenses were also well below the peer-group average.

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

The benefit of economies of scale

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

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

32

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P.O. Box 2600

Valley Forge, PA 19482-2600

Connect with Vanguard® > vanguard.com

Fund Information > 800-662-7447

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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, sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or sec.gov.

You can review 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.

© 2019 The Vanguard Group, Inc.

All rights reserved.

Vanguard Marketing Corporation, Distributor.

Q14922 092019

Semiannual Report | July 31, 2019

Vanguard High-Yield Corporate Fund

See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.

Important information about access to shareholder reports

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.

If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.

You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.

Contents
About Your Fund’s Expenses	1
Financial Statements	4
Trustees Approve Advisory Arrangement	31

About Your Fund’s Expenses

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

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

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

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

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

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

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

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

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

1

Six Months Ended July 31, 2019

	Beginning	Ending	Expenses
	Account Value	Account Value	Paid During
High-Yield Corporate Fund	1/31/2019	7/31/2019	Period
Based on Actual Fund Return
Investor Shares	$1,000.00	$1,061.89	$1.18
Admiral™ Shares	1,000.00	1,062.41	0.66
Based on Hypothetical 5% Yearly Return
Investor Shares	$1,000.00	$1,023.65	$1.15
Admiral Shares	1,000.00	1,024.15	0.65

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: 0.23% for Investor Shares and 0.13% for Admiral Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (181/365).

2

High-Yield Corporate Fund

Sector Diversification

As of July 31, 2019

Basic Industry	4.8	%
Capital Goods	11.6
Communication	19.3
Consumer Cyclical	12.2
Consumer Non-Cyclical	12.7
Energy	11.3
Finance	11.7
Other Industrial	0.7
Technology	9.2
Transportation	0.2
Treasury/Agency	4.1
Utilities	1.0
Other	1.2

The table reflects the fund’s market exposure. Any holdings in short-term reserves are excluded. The agency and mortgage-backed securities sectors may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government.

3

High-Yield Corporate Fund

Financial Statements (unaudited)

Statement of Net Assets

As of July 31, 2019

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.

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
U.S. Government and Agency Obligations (3.9%)
U.S. Government Securities (3.9%)
1	United States Treasury Note/Bond	1.000%	10/15/19	250,000		249,452
	United States Treasury Note/Bond	1.375%	1/15/20	250,000		249,180
	United States Treasury Note/Bond	1.500%	4/15/20	250,000		248,945
	United States Treasury Note/Bond	1.500%	7/15/20	250,000		248,673
Total U.S. Government and Agency Obligations (Cost $995,132)						996,250
Corporate Bonds (90.8%)
Finance (11.2%)
	Banking (2.9%)
	Ally Financial Inc.	4.625%	5/19/22	3,595		3,739
	Ally Financial Inc.	5.125%	9/30/24	16,315		17,804
	Ally Financial Inc.	4.625%	3/30/25	18,965		20,269
	Ally Financial Inc.	5.750%	11/20/25	56,528		63,099
	Ally Financial Inc.	8.000%	11/1/31	7,355		9,782
2	BNP Paribas SA	6.750%	3/14/66	57,750		60,515
2	Credit Suisse AG	6.250%	12/31/50	163,170		172,119
2	ING Groep NV	6.875%	4/16/66	71,510		75,173
3	Intesa Sanpaolo SPA	5.710%	1/15/26	75,000		76,969
	Royal Bank of Scotland Group plc	6.125%	12/15/22	52,705		56,592
2	UBS Group AG	6.875%	3/22/66	114,390		118,421
3	UniCredit SPA	6.572%	1/14/22	71,635		76,580
	Finance Companies (5.2%)
2,3	AerCap Global Aviation Trust	6.500%	6/15/45	125,050		132,240
	Aircastle Ltd.	5.000%	4/1/23	33,700		35,575
	Aircastle Ltd.	4.125%	5/1/24	53,980		55,406
3	Avolon Holdings Funding Ltd.	5.250%	5/15/24	50,695		54,370
	CIT Group Inc.	5.000%	8/15/22	68,033		72,115
	CIT Group Inc.	5.000%	8/1/23	52,070		55,845
	CIT Group Inc.	4.750%	2/16/24	3,615		3,827
3	Freedom Mortgage Corp.	8.250%	4/15/25	24,260		21,137
	Navient Corp.	7.250%	1/25/22	43,900		47,796
	Navient Corp.	6.500%	6/15/22	144,669		154,253
	Navient Corp.	5.500%	1/25/23	48,120		49,985
	Navient Corp.	7.250%	9/25/23	24,615		26,861
	Navient Corp.	6.750%	6/25/25	138,585		144,821
	Navient Corp.	5.625%	8/1/33	34,226		28,664
3	Park Aerospace Holdings Ltd.	5.500%	2/15/24	20,000		21,592
	Springleaf Finance Corp.	8.250%	12/15/20	36,210		38,609

4

High-Yield Corporate Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
	Springleaf Finance Corp.	7.750%	10/1/21	69,567		76,002
	Springleaf Finance Corp.	6.125%	5/15/22	13,610		14,597
	Springleaf Finance Corp.	8.250%	10/1/23	17,136		19,921
	Springleaf Finance Corp.	6.125%	3/15/24	53,330		57,730
	Springleaf Finance Corp.	6.875%	3/15/25	23,455		26,123
	Springleaf Finance Corp.	7.125%	3/15/26	142,691		159,814
	Springleaf Finance Corp.	6.625%	1/15/28	25,345		27,468
	Insurance (2.8%)
2	Aegon NV	5.500%	4/11/48	72,780		76,874
4,5	Asurion LLC. Bank Loan	5.234%	11/3/24	100,327		100,546
	Centene Corp.	4.750%	1/15/25	20,000		20,400
3	Centene Corp.	5.375%	6/1/26	10,000		10,538
	CNO Financial Group Inc.	5.250%	5/30/25	57,853		62,120
	CNO Financial Group Inc.	5.250%	5/30/29	54,320		58,801
	Genworth Holdings Inc.	7.700%	6/15/20	2,480		2,520
	Genworth Holdings Inc.	7.200%	2/15/21	28,015		28,575
	Genworth Holdings Inc.	7.625%	9/24/21	25,505		26,430
	Genworth Holdings Inc.	4.900%	8/15/23	49,580		45,986
	Genworth Holdings Inc.	4.800%	2/15/24	15,900		14,628
	MGIC Investment Corp.	5.750%	8/15/23	24,695		26,825
	Radian Group Inc.	4.500%	10/1/24	73,175		75,553
	Radian Group Inc.	4.875%	3/15/27	16,000		16,080
2	Voya Financial Inc.	5.650%	5/15/53	87,753		92,360
	WellCare Health Plans Inc.	5.250%	4/1/25	41,580		43,139
3	WellCare Health Plans Inc.	5.375%	8/15/26	5,000		5,288
	Other Finance (0.1%)
4,5	Trans Union LLC Bank Loan, 3M USD LIBOR + 2.000%	4.234%	6/19/25	36,912		36,993
	Real Estate Investment Trusts (0.2%)
	Felcor Lodging LP	6.000%	6/1/25	46,060		48,190
						2,867,659
Industrial (78.6%)
	Basic Industry (4.6%)
	AK Steel Corp.	7.500%	7/15/23	69,034		70,587
3	Alliance Resource Operating Partners LP / Alliance Resource Finance Corp.	7.500%	5/1/25	95,182		98,989
	Chemours Co.	6.625%	5/15/23	44,094		44,204
	Chemours Co.	7.000%	5/15/25	93,595		91,606
	Chemours Co.	5.375%	5/15/27	31,740		27,931
	Commercial Metals Co.	4.875%	5/15/23	6,540		6,687
	Commercial Metals Co.	5.750%	4/15/26	45,720		46,920
	Commercial Metals Co.	5.375%	7/15/27	19,735		19,784
3	Constellium NV	5.750%	5/15/24	34,862		35,821
3	Constellium NV	6.625%	3/1/25	68,600		71,687
3	Constellium NV	5.875%	2/15/26	10,195		10,590
3,6	CTC BondCo GmbH	5.250%	12/15/25	13,800		15,489
	Graphic Packaging International Inc.	4.125%	8/15/24	23,920		24,518
3	Graphic Packaging International LLC	4.750%	7/15/27	7,870		8,185
3	New Gold Inc.	6.250%	11/15/22	38,365		36,735
3	New Gold Inc.	6.375%	5/15/25	46,920		40,586
3	Novelis Corp.	6.250%	8/15/24	53,590		56,136

5

High-Yield Corporate Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
3	Novelis Corp.	5.875%	9/30/26	63,010		65,373
	Olin Corp.	5.125%	9/15/27	61,215		61,445
	Olin Corp.	5.625%	8/1/29	43,495		44,582
	Olin Corp.	5.000%	2/1/30	10,215		9,921
	PolyOne Corp.	5.250%	3/15/23	6,310		6,704
4,5	Starfruit Finco BV Bank Loan, 3M USD LIBOR + 3.250%	5.610%	10/1/25	17,562		17,266
4,5	Starfruit Finco BV Bank Loan, 3M USD LIBOR + 3.250%	5.610%	10/1/25	3,415		3,357
3	Starfruit Finco BV / Starfruit US Holdco LLC	8.000%	10/1/26	42,200		41,620
	Steel Dynamics Inc.	5.125%	10/1/21	31,770		31,929
	Steel Dynamics Inc.	5.500%	10/1/24	40,885		42,060
	Steel Dynamics Inc.	4.125%	9/15/25	3,305		3,309
	Steel Dynamics Inc.	5.000%	12/15/26	9,730		10,168
3	Tronox Finance plc	5.750%	10/1/25	9,105		8,559
3	Tronox Inc.	6.500%	4/15/26	90,895		87,032
	United States Steel Corp.	6.650%	6/1/37	13,760		11,696
3	Versum Materials Inc.	5.500%	9/30/24	21,566		22,968
	Capital Goods (11.2%)
3	American Builders & Contractors Supply Co. Inc.	5.875%	5/15/26	59,970		63,343
3	ARD Finance SA	7.125%	9/15/23	21,790		22,416
	ARD Finance SA	7.125%	9/15/23	13,860		14,259
3	Ardagh Packaging Finance plc / Ardagh Holdings USA Inc.	7.250%	5/15/24	70,023		73,874
3	Ardagh Packaging Finance plc / Ardagh Holdings USA Inc.	6.000%	2/15/25	126,361		130,468
3,7	Ardagh Packaging Finance plc / Ardagh Holdings USA Inc.	4.125%	8/15/26	37,750		37,797
3,8	Ardagh Packaging Finance plc / Ardagh Holdings USA Inc.	4.750%	7/15/27	5,520		6,793
3,7	Ardagh Packaging Finance plc / Ardagh Holdings USA Inc.	5.250%	8/15/27	15,860		15,781
3	Ashtead Capital Inc.	4.125%	8/15/25	46,175		46,752
3	Ashtead Capital Inc.	5.250%	8/1/26	17,715		18,534
3	Ashtead Capital Inc.	4.375%	8/15/27	46,175		46,406
	Ball Corp.	5.000%	3/15/22	8,535		8,919
	Ball Corp.	4.000%	11/15/23	15,403		15,981
6	Ball Corp.	4.375%	12/15/23	17,385		22,438
	Ball Corp.	5.250%	7/1/25	4,690		5,100
	Ball Corp.	4.875%	3/15/26	86,335		91,407
3	Beacon Escrow Corp.	4.875%	11/1/25	83,330		82,497
3	Berry Global Escrow Corp.	4.875%	7/15/26	53,380		55,541
3	Berry Global Escrow Corp.	5.625%	7/15/27	7,055		7,399
3	Berry Global Inc.	4.500%	2/15/26	57,898		57,753
3	Bombardier Inc.	5.750%	3/15/22	21,545		22,003
3	Bombardier Inc.	6.125%	1/15/23	76,319		77,464
3	Bombardier Inc.	7.500%	12/1/24	14,540		15,067
3	Bombardier Inc.	7.500%	3/15/25	47,116		47,999
3	Bombardier Inc.	7.875%	4/15/27	52,285		52,677
3	CD&R Waterworks Merger Sub LLC	6.125%	8/15/25	5,535		5,701
3	Cemex SAB de CV	6.125%	5/5/25	101,200		104,489
3	Cemex SAB de CV	7.750%	4/16/26	24,265		26,176

6

High-Yield Corporate Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
3	Clean Harbors Inc.	4.875%	7/15/27	32,416		33,389
3	Clean Harbors Inc.	5.125%	7/15/29	25,851		27,144
	Crown Americas LLC / Crown Americas Capital Corp. IV	4.500%	1/15/23	30,000		30,938
	Crown Americas LLC / Crown Americas Capital Corp. V	4.250%	9/30/26	2,750		2,788
	Crown Americas LLC / Crown Americas Capital Corp. VI	4.750%	2/1/26	23,465		24,081
3,6	Crown European Holdings SA	2.875%	2/1/26	51,200		61,428
3	Flex Acquisition Co. Inc.	6.875%	1/15/25	127,475		112,815
3	HD Supply Inc.	5.375%	10/15/26	38,211		40,217
3	Herc Holdings Inc.	5.500%	7/15/27	124,695		124,695
3	Jeld-Wen Inc.	4.625%	12/15/25	11,180		10,998
3	Jeld-Wen Inc.	4.875%	12/15/27	6,320		6,202
3	LANXESS AG	6.000%	4/1/24	21,210		21,767
3,6	Loxam SAS	4.250%	4/15/24	5,520		6,357
3	OI European Group BV	4.000%	3/15/23	21,630		21,738
3	Owens-Brockway Glass Container Inc.	5.000%	1/15/22	6,120		6,273
3	Owens-Brockway Glass Container Inc.	5.875%	8/15/23	29,295		31,346
3	Owens-Brockway Glass Container Inc.	6.375%	8/15/25	11,675		12,726
	Reynolds Group Issuer Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu	5.750%	10/15/20	20,676		20,753
	Reynolds Group Issuer Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu	6.875%	2/15/21	13,417		13,417
3	Reynolds Group Issuer Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu	5.125%	7/15/23	63,805		64,842
3	Reynolds Group Issuer Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu	7.000%	7/15/24	14,670		15,165
3	Standard Industries Inc.	5.500%	2/15/23	9,705		9,923
3	Standard Industries Inc.	5.375%	11/15/24	64,263		65,870
3	Standard Industries Inc.	6.000%	10/15/25	139,715		146,701
3	Standard Industries Inc.	5.000%	2/15/27	16,990		17,287
3	Standard Industries Inc.	4.750%	1/15/28	31,995		31,595
	TransDigm Inc.	6.000%	7/15/22	44,150		44,702
	TransDigm Inc.	6.500%	7/15/24	144,895		148,699
	TransDigm Inc.	6.500%	5/15/25	44,030		45,296
3	TransDigm Inc.	6.250%	3/15/26	20,000		21,050
	TransDigm Inc.	6.375%	6/15/26	41,650		42,535
3,6	Trivium Packaging Finance BV	3.750%	8/15/26	6,095		6,978
3	Trivium Packaging Finance BV	5.500%	8/15/26	11,810		12,179
	United Rentals North America Inc.	5.500%	7/15/25	48,115		49,919
	United Rentals North America Inc.	4.625%	10/15/25	52,360		53,145
	United Rentals North America Inc.	5.875%	9/15/26	62,210		65,943
	United Rentals North America Inc.	6.500%	12/15/26	55,080		59,486
	United Rentals North America Inc.	5.500%	5/15/27	76,330		79,669
	United Rentals North America Inc.	4.875%	1/15/28	60,445		61,578
	United Rentals North America Inc.	5.250%	1/15/30	24,410		24,959

7

High-Yield Corporate Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
	Communication (18.5%)
3	Altice Financing SA	6.625%	2/15/23	58,671		60,138
3	Altice France SA	6.250%	5/15/24	39,600		40,788
3	Altice France SA	7.375%	5/1/26	55,940		59,017
3	Altice Luxembourg SA	7.750%	5/15/22	13,588		13,826
3	Altice Luxembourg SA	7.625%	2/15/25	40,000		39,100
	Belo Corp.	7.750%	6/1/27	29,475		32,938
	Belo Corp.	7.250%	9/15/27	22,207		24,317
	Cablevision Systems Corp.	8.000%	4/15/20	15,000		15,488
	CCO Holdings LLC / CCO Holdings Capital Corp.	5.250%	3/15/21	8,380		8,411
	CCO Holdings LLC / CCO Holdings Capital Corp.	5.250%	9/30/22	12,635		12,777
	CCO Holdings LLC / CCO Holdings Capital Corp.	5.125%	2/15/23	13,406		13,607
3	CCO Holdings LLC / CCO Holdings Capital Corp.	5.125%	5/1/23	97,010		99,314
	CCO Holdings LLC / CCO Holdings Capital Corp.	5.750%	9/1/23	33,450		34,119
	CCO Holdings LLC / CCO Holdings Capital Corp.	5.750%	1/15/24	14,550		14,841
3	CCO Holdings LLC / CCO Holdings Capital Corp.	5.375%	5/1/25	72,205		74,732
3	CCO Holdings LLC / CCO Holdings Capital Corp.	5.750%	2/15/26	47,140		49,556
3	CCO Holdings LLC / CCO Holdings Capital Corp.	5.500%	5/1/26	46,840		49,065
3	CCO Holdings LLC / CCO Holdings Capital Corp.	5.875%	5/1/27	14,255		14,968
3	CCO Holdings LLC / CCO Holdings Capital Corp.	5.000%	2/1/28	25,000		25,656
	CenturyLink Inc.	5.625%	4/1/20	2,500		2,528
	CenturyLink Inc.	5.800%	3/15/22	10,107		10,524
	CenturyLink Inc.	6.750%	12/1/23	23,920		25,774
	CenturyLink Inc.	7.500%	4/1/24	17,708		19,368
	Charter Communications Operating LLC / Charter Communications Operating Capital	6.484%	10/23/45	4,215		4,976
4,5	Crown Finance US Inc. Bank Loan, 3M USD LIBOR + 2.500%	4.484%	2/22/25	99,234		98,812
	CSC Holdings LLC	6.750%	11/15/21	72,762		77,855
3	CSC Holdings LLC	5.125%	12/15/21	59,340		59,414
3	CSC Holdings LLC	5.375%	7/15/23	11,025		11,273
3	CSC Holdings LLC	10.875%	10/15/25	5,000		5,706
3	CSC Holdings LLC	5.500%	5/15/26	142,685		148,749
3	CSC Holdings LLC	5.500%	4/15/27	76,415		80,236
	DISH DBS Corp.	6.750%	6/1/21	152,345		159,010
	DISH DBS Corp.	5.875%	7/15/22	105,934		107,523
	DISH DBS Corp.	5.000%	3/15/23	43,776		42,244
	DISH DBS Corp.	5.875%	11/15/24	87,950		81,574
	DISH DBS Corp.	7.750%	7/1/26	97,230		94,799
	Embarq Corp.	7.995%	6/1/36	23,035		22,402
	Gannett Co. Inc.	6.375%	10/15/23	22,021		22,627
3	Gray Escrow Inc.	7.000%	5/15/27	10,245		11,167
3	Gray Television Inc.	5.125%	10/15/24	67,032		68,624
3	Gray Television Inc.	5.875%	7/15/26	55,725		57,884
	Level 3 Financing Inc.	5.375%	8/15/22	65,480		65,807
	Level 3 Financing Inc.	5.625%	2/1/23	26,620		26,953
	Level 3 Financing Inc.	5.125%	5/1/23	36,380		36,562
4,5	Nascar Holdings Inc. Bank Loan	0.000%	7/27/26	6,510		6,537
	Nokia Oyj	3.375%	6/12/22	30,715		31,214
	Nokia Oyj	4.375%	6/12/27	39,230		40,458
	Quebecor Media Inc.	5.750%	1/15/23	103,907		110,661
	Qwest Corp.	6.875%	9/15/33	25,162		25,036
3	Sinclair Television Group Inc.	5.625%	8/1/24	15,715		16,167
3	Sinclair Television Group Inc.	5.875%	3/15/26	90,410		93,800

8

High-Yield Corporate Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
3	Sinclair Television Group Inc.	5.125%	2/15/27	57,340		57,340
3	Sirius XM Radio Inc.	3.875%	8/1/22	43,500		43,935
3	Sirius XM Radio Inc.	4.625%	7/15/24	44,975		46,099
	Sprint Capital Corp.	6.875%	11/15/28	99,215		109,136
	Sprint Capital Corp.	8.750%	3/15/32	33,969		42,206
3	Sprint Communications Inc.	7.000%	3/1/20	73,700		75,266
	Sprint Corp.	7.875%	9/15/23	280,264		312,144
	Sprint Corp.	7.125%	6/15/24	70,886		77,443
	Sprint Corp.	7.625%	2/15/25	53,661		59,564
	T-Mobile USA Inc.	5.375%	4/15/27	102,055		108,306
	Telecom Italia Capital SA	6.375%	11/15/33	12,326		12,911
	Telecom Italia Capital SA	6.000%	9/30/34	33,530		33,991
	Telecom Italia Capital SA	7.721%	6/4/38	42,725		49,401
3	Telecom Italia SpA	5.303%	5/30/24	6,555		6,924
3	Telenet Finance Luxembourg Notes Sarl	5.500%	3/1/28	110,200		112,142
	Time Warner Cable LLC	5.875%	11/15/40	2,050		2,254
	Time Warner Cable LLC	5.500%	9/1/41	40,846		43,228
3	Univision Communications Inc.	5.125%	5/15/23	17,900		17,766
3	Univision Communications Inc.	5.125%	2/15/25	160,720		156,501
3	UPCB Finance IV Ltd.	5.375%	1/15/25	80,000		82,000
2	Viacom Inc.	5.875%	2/28/57	82,651		86,065
2	Viacom Inc.	6.250%	2/28/57	33,146		34,851
	Videotron Ltd.	5.000%	7/15/22	111,654		116,818
3	Videotron Ltd.	5.375%	6/15/24	8,633		9,205
3	Virgin Media Finance plc	6.000%	10/15/24	58,255		60,440
3	Virgin Media Secured Finance plc	5.250%	1/15/26	92,210		94,285
3	Virgin Media Secured Finance plc	5.500%	8/15/26	10,225		10,685
3	Virgin Media Secured Finance plc	5.500%	5/15/29	72,780		74,418
3	VTR Finance BV	6.875%	1/15/24	79,760		82,352
3	WMG Acquisition Corp.	5.000%	8/1/23	26,706		27,274
3	WMG Acquisition Corp.	4.875%	11/1/24	72,596		74,411
3	WMG Acquisition Corp.	5.500%	4/15/26	85,786		88,789
3,6	WMG Acquisition Corp.	3.625%	10/15/26	7,030		8,337
	Zayo Group LLC / Zayo Capital Inc.	6.000%	4/1/23	107,300		110,117
3	Ziggo BV	5.500%	1/15/27	60,580		61,867
	Consumer Cyclical (11.7%)
3	1011778 BC ULC / New Red Finance Inc.	4.250%	5/15/24	131,714		134,842
3	1011778 BC ULC / New Red Finance Inc.	5.000%	10/15/25	115,010		117,454
3	Adient Global Holdings Ltd.	4.875%	8/15/26	149,047		114,021
3	Adient US LLC	7.000%	5/15/26	17,845		18,068
3	APX Group Inc.	8.875%	12/1/22	134,375		120,937
4,5	Bass Pro Group, LLC. Bank Loan, 3M USD LIBOR + 5.000%	7.234%	12/15/23	63,219		59,742
3	Caesars Resort Collection LLC / CRC Finco Inc.	5.250%	10/15/25	194,326		193,840
3	Cedar Fair LP	5.250%	7/15/29	31,623		32,651
	Cedar Fair LP / Canada’s Wonderland Co. / Magnum Management Corp.	5.375%	6/1/24	15,675		16,106
	Cedar Fair LP / Canada’s Wonderland Co. / Magnum Management Corp. / Millennium Operations Inc.	5.375%	4/15/27	27,005		28,423
	Dana Holding Corp.	5.500%	12/15/24	34,460		34,891
	Delta Merger Sub Inc.	6.000%	9/15/26	58,115		62,764
3	FirstCash Inc.	5.375%	6/1/24	4,100		4,233

9

High-Yield Corporate Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
	GLP Capital LP / GLP Financing II Inc.	5.250%	6/1/25	14,310		15,365
	GLP Capital LP / GLP Financing II Inc.	5.375%	4/15/26	60,235		65,430
	GLP Capital LP / GLP Financing II Inc.	5.300%	1/15/29	41,865		45,528
	Goodyear Tire & Rubber Co.	5.125%	11/15/23	8,000		8,100
	Goodyear Tire & Rubber Co.	5.000%	5/31/26	52,202		52,071
	Goodyear Tire & Rubber Co.	4.875%	3/15/27	112,833		107,050
3	GW Honos Security Corp.	8.750%	5/15/25	48,615		49,709
3	Hanesbrands Inc.	4.625%	5/15/24	24,270		25,150
3	Hanesbrands Inc.	4.875%	5/15/26	24,510		25,582
	Hilton Domestic Operating Co. Inc.	4.250%	9/1/24	67,921		68,685
	Hilton Domestic Operating Co. Inc.	5.125%	5/1/26	76,465		79,332
	Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp.	4.625%	4/1/25	105,130		107,758
	Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp.	4.875%	4/1/27	64,885		67,318
3	Jack Ohio Finance LLC / Jack Ohio Finance 1 Corp.	6.750%	11/15/21	7,300		7,464
3	Jacobs Entertainment Inc.	7.875%	2/1/24	26,555		28,215
	KB Home	7.000%	12/15/21	7,810		8,396
	KB Home	7.500%	9/15/22	6,935		7,750
	KB Home	7.625%	5/15/23	41,775		46,684
3	KFC Holding Co./Pizza Hut Holdings LLC/ Taco Bell of America LLC	5.000%	6/1/24	64,095		66,178
3	KFC Holding Co./Pizza Hut Holdings LLC/ Taco Bell of America LLC	5.250%	6/1/26	29,156		30,286
3	KFC Holding Co./Pizza Hut Holdings LLC/ Taco Bell of America LLC	4.750%	6/1/27	24,810		25,337
	L Brands Inc.	6.694%	1/15/27	38,191		38,096
	L Brands Inc.	5.250%	2/1/28	42,804		39,701
	Lennar Corp.	4.125%	1/15/22	40,495		41,356
	Lennar Corp.	4.875%	12/15/23	21,825		22,971
	Lennar Corp.	4.500%	4/30/24	78,475		81,520
	Lennar Corp.	5.875%	11/15/24	4,860		5,340
	Lennar Corp.	5.250%	6/1/26	9,460		10,063
	Lennar Corp.	5.000%	6/15/27	42,955		45,264
	Lennar Corp.	4.750%	11/29/27	44,610		46,840
3,6	LHMC Finco Sarl	6.250%	12/20/23	41,210		49,080
3	LHMC Finco Sarl	7.875%	12/20/23	66,800		70,641
3	Lithia Motors Inc.	5.250%	8/1/25	5,708		5,879
	Meritage Homes Corp.	5.125%	6/6/27	17,560		18,131
	MGM Resorts International	6.625%	12/15/21	33,997		36,802
	MGM Resorts International	6.000%	3/15/23	11,254		12,239
	MGM Resorts International	5.750%	6/15/25	50,000		54,000
	MGM Resorts International	5.500%	4/15/27	35,055		37,158
3	Panther BF Aggregator 2 LP / Panther Finance Co. Inc.	8.500%	5/15/27	17,505		17,789
4,5	Panther BF Aggregator Bank Loan, 3M USD LIBOR + 3.500%	5.734%	4/30/26	35,875		35,853
3	Party City Holdings Inc.	6.125%	8/15/23	4,000		4,010
3	PetSmart Inc.	5.875%	6/1/25	41,731		41,314
	PulteGroup Inc.	5.500%	3/1/26	66,505		71,746
	PulteGroup Inc.	5.000%	1/15/27	4,315		4,542
	Service Corp. International	5.125%	6/1/29	20,495		21,597
	Service Corp. International	4.625%	12/15/27	13,735		14,061

10

High-Yield Corporate Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
	Toll Brothers Finance Corp.	5.875%	2/15/22	4,000		4,245
	Toll Brothers Finance Corp.	4.875%	11/15/25	9,595		10,099
	Toll Brothers Finance Corp.	4.875%	3/15/27	68,200		71,951
	William Lyon Homes Inc.	7.000%	8/15/22	2,972		2,972
	William Lyon Homes Inc.	5.875%	1/31/25	48,230		48,109
3	Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.	5.500%	3/1/25	87,916		92,092
3	Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.	5.250%	5/15/27	51,150		52,301
	Consumer Noncyclical (12.2%)
	Aramark Services Inc.	5.125%	1/15/24	51,465		52,945
3	Aramark Services Inc.	5.000%	4/1/25	54,020		56,181
	Aramark Services Inc.	4.750%	6/1/26	46,220		47,433
3	Aramark Services Inc.	5.000%	2/1/28	47,085		49,086
3	Avantor Inc.	6.000%	10/1/24	20,000		21,400
	B&G Foods Inc.	5.250%	4/1/25	38,900		38,803
3	Bausch Health Cos. Inc.	6.500%	3/15/22	21,490		22,242
3	Bausch Health Cos. Inc.	5.500%	3/1/23	2,066		2,084
3	Bausch Health Cos. Inc.	5.875%	5/15/23	13,955		14,112
3	Bausch Health Cos. Inc.	7.000%	3/15/24	38,315		40,374
3	Bausch Health Cos. Inc.	5.500%	11/1/25	71,675		74,542
3	Catalent Pharma Solutions Inc.	5.000%	7/15/27	21,270		21,855
3	Change Healthcare Holdings LLC / Change Healthcare Finance Inc.	5.750%	3/1/25	69,800		70,236
3	Charles River Laboratories International Inc.	5.500%	4/1/26	14,000		14,840
	CHS/Community Health Systems Inc.	5.125%	8/1/21	15,235		15,083
	CHS/Community Health Systems Inc.	6.875%	2/1/22	22,992		15,750
	CHS/Community Health Systems Inc.	6.250%	3/31/23	120,190		115,232
3	CHS/Community Health Systems Inc.	8.125%	6/30/24	37,651		28,709
3,6	Darling Global Finance BV	3.625%	5/15/26	12,945		15,161
3	Darling Ingredients Inc.	5.250%	4/15/27	7,305		7,615
3,6	Diamond BC BV	5.625%	8/15/25	101,750		87,641
3	Endo Dac / Endo Finance LLC / Endo Finco Inc.	6.000%	7/15/23	91,343		58,460
3	Endo Dac / Endo Finance LLC / Endo Finco Inc.	6.000%	2/1/25	64,855		38,913
	HCA Inc.	6.250%	2/15/21	32,130		33,656
	HCA Inc.	7.500%	2/15/22	14,845		16,441
	HCA Inc.	4.750%	5/1/23	27,500		29,287
	HCA Inc.	5.875%	5/1/23	54,945		60,165
	HCA Inc.	5.375%	2/1/25	66,825		72,589
	HCA Inc.	5.250%	4/15/25	45,000		49,556
	HCA Inc.	7.690%	6/15/25	4,510		5,299
	HCA Inc.	5.875%	2/15/26	110,595		123,037
	HCA Inc.	5.250%	6/15/26	31,895		35,124
	HCA Inc.	5.625%	9/1/28	12,585		13,875
	HCA Inc.	5.875%	2/1/29	13,700		15,275
3	Hologic Inc.	4.375%	10/15/25	5,000		5,081
3	Hologic Inc.	4.625%	2/1/28	18,855		19,350
3	IQVIA Inc.	4.875%	5/15/23	26,350		26,976
3	IQVIA Inc.	5.000%	5/15/27	51,620		53,685
3,6,7	IQVIA Inc.	2.250%	1/15/28	41,670		46,129
3	Kinetic Concepts Inc. / KCI USA Inc.	7.875%	2/15/21	45,728		46,757

11

High-Yield Corporate Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
4,5	Lands’ End, Inc. Bank Loan, 3M USD LIBOR + 3.250%	5.491%	3/12/21	62,271		60,792
	Mattel Inc.	4.350%	10/1/20	8,422		8,538
	Mattel Inc.	2.350%	8/15/21	5,000		4,900
3	MPH Acquisition Holdings LLC	7.125%	6/1/24	53,485		52,081
3	Polaris Intermediate Corp.	8.500%	12/1/22	82,880		76,664
3	Post Holdings Inc.	5.500%	3/1/25	56,995		58,990
3	Post Holdings Inc.	5.000%	8/15/26	115,825		117,562
3	Post Holdings Inc.	5.750%	3/1/27	37,091		38,389
3	Post Holdings Inc.	5.625%	1/15/28	90,650		93,483
3	Quintiles IMS Inc.	5.000%	10/15/26	66,310		68,962
	Revlon Consumer Products Corp.	5.750%	2/15/21	19,165		17,728
	Revlon Consumer Products Corp.	6.250%	8/1/24	67,860		45,466
4,5	Revlon Consumer Products Corp. Bank Loan	6.022%	9/7/23	5,921		4,922
4,5	Revlon Consumer Products Corp. Bank Loan	6.022%	9/7/23	19,991		16,618
3	Sterigenics-Nordion Holdings LLC	6.500%	5/15/23	62,435		63,372
3	Sterigenics-Nordion Topco LLC	8.125%	11/1/21	24,400		24,278
3	Syneos Health Inc. / inVentiv Health Inc. / inVentiv Health Clinical Inc.	7.500%	10/1/24	5,828		6,076
	Tenet Healthcare Corp.	4.500%	4/1/21	42,147		42,832
	Tenet Healthcare Corp.	4.375%	10/1/21	106,480		108,476
	Tenet Healthcare Corp.	4.625%	7/15/24	9,660		9,829
	Teva Pharmaceutical Finance Co. BV	2.950%	12/18/22	13,080		11,772
	Teva Pharmaceutical Finance Netherlands III BV	2.200%	7/21/21	10,000		9,387
	Teva Pharmaceutical Finance Netherlands III BV	3.150%	10/1/26	87,800		68,484
	Teva Pharmaceutical Finance Netherlands III BV	6.750%	3/1/28	87,505		77,879
	Teva Pharmaceutical Finance Netherlands III BV	4.100%	10/1/46	10,000		6,650
3	TreeHouse Foods Inc.	6.000%	2/15/24	70,000		72,450
3	Valeant Pharmaceuticals International Inc.	9.250%	4/1/26	17,325		19,361
3	Valeant Pharmaceuticals International Inc.	9.000%	12/15/25	26,760		29,904
3	Valeant Pharmaceuticals International Inc.	8.500%	1/31/27	48,400		53,361
3	VRX Escrow Corp.	6.125%	4/15/25	154,710		158,191
3	West Street Merger Sub Inc.	6.375%	9/1/25	133,245		122,252
	Energy (10.8%)
	AmeriGas Partners LP / AmeriGas Finance Corp.	5.625%	5/20/24	46,910		49,783
	AmeriGas Partners LP / AmeriGas Finance Corp.	5.500%	5/20/25	21,659		22,796
	AmeriGas Partners LP / AmeriGas Finance Corp.	5.875%	8/20/26	46,910		49,725
	AmeriGas Partners LP / AmeriGas Finance Corp.	5.750%	5/20/27	59,170		62,128
	Andeavor Logistics LP / Tesoro Logistics Finance Corp.	5.250%	1/15/25	51,601		54,439
	Antero Resources Corp.	5.125%	12/1/22	54,150		51,442
3	Blue Racer Midstream LLC / Blue Racer Finance Corp.	6.125%	11/15/22	12,000		12,000
3	Blue Racer Midstream LLC / Blue Racer Finance Corp.	6.625%	7/15/26	3,125		3,121
	Cheniere Corpus Christi Holdings LLC	7.000%	6/30/24	20,612		23,446
	Cheniere Corpus Christi Holdings LLC	5.875%	3/31/25	26,905		29,595
	Cheniere Corpus Christi Holdings LLC	5.125%	6/30/27	43,385		47,181
	Chesapeake Energy Corp.	7.500%	10/1/26	31,450		24,610

12

High-Yield Corporate Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
	Chesapeake Energy Corp.	8.000%	6/15/27	100,395		79,312
3	DCP Midstream Operating LP	4.750%	9/30/21	26,924		27,597
	DCP Midstream Operating LP	4.950%	4/1/22	45,799		47,287
	DCP Midstream Operating LP	3.875%	3/15/23	26,988		27,258
	DCP Midstream Operating LP	5.600%	4/1/44	26,895		25,147
	Diamondback Energy Inc.	4.750%	11/1/24	5,895		6,057
	Diamondback Energy Inc.	5.375%	5/31/25	37,860		39,753
	Energy Transfer Operating LP	4.250%	3/15/23	84,735		88,249
	Energy Transfer Operating LP	5.875%	1/15/24	57,741		64,057
	Energy Transfer Operating LP	5.500%	6/1/27	106,236		118,898
	Ferrellgas LP / Ferrellgas Finance Corp.	6.500%	5/1/21	82,009		71,758
	Ferrellgas LP / Ferrellgas Finance Corp.	6.750%	1/15/22	16,317		14,196
	Ferrellgas LP / Ferrellgas Finance Corp.	6.750%	6/15/23	26,720		23,113
	Laredo Petroleum Inc.	5.625%	1/15/22	69,522		64,308
	Laredo Petroleum Inc.	6.250%	3/15/23	90,158		80,241
	Matador Resources Co.	5.875%	9/15/26	105,470		103,888
3	MEG Energy Corp.	6.375%	1/30/23	30,650		29,194
3	MEG Energy Corp.	7.000%	3/31/24	37,348		35,574
3	MEG Energy Corp.	6.500%	1/15/25	97,700		97,456
3	NGPL PipeCo LLC	4.375%	8/15/22	13,995		14,555
3	NGPL PipeCo LLC	4.875%	8/15/27	16,650		17,607
3	Noble Holding International Ltd.	7.875%	2/1/26	15,185		13,002
3	Parsley Energy LLC / Parsley Finance Corp.	5.375%	1/15/25	47,585		48,180
3	Parsley Energy LLC / Parsley Finance Corp.	5.250%	8/15/25	6,810		6,861
	QEP Resources Inc.	6.800%	3/1/20	7,370		7,444
	QEP Resources Inc.	5.375%	10/1/22	42,485		39,511
	QEP Resources Inc.	5.250%	5/1/23	42,925		39,169
3	Rockies Express Pipeline LLC	7.500%	7/15/38	38,048		42,947
3	Rockies Express Pipeline LLC	6.875%	4/15/40	13,880		15,251
	Sabine Pass Liquefaction LLC	5.875%	6/30/26	41,960		47,729
	SM Energy Co.	6.125%	11/15/22	30,015		29,040
	SM Energy Co.	5.000%	1/15/24	69,110		62,890
	SM Energy Co.	5.625%	6/1/25	54,040		46,745
	SM Energy Co.	6.750%	9/15/26	17,855		15,936
	SM Energy Co.	6.625%	1/15/27	9,500		8,217
3	Southern Star Central Corp.	5.125%	7/15/22	14,790		14,864
	Southwestern Energy Co.	6.200%	1/23/25	15,232		13,176
	Sunoco LP / Sunoco Finance Corp.	4.875%	1/15/23	45,000		45,956
	Sunoco LP / Sunoco Finance Corp.	5.500%	2/15/26	72,984		75,721
	Sunoco LP / Sunoco Finance Corp.	6.000%	4/15/27	67,410		70,949
	Sunoco LP / Sunoco Finance Corp.	5.875%	3/15/28	16,180		16,787
3	Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp.	4.750%	10/1/23	44,495		45,107
3	Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp.	5.500%	9/15/24	16,790		17,042
3	Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp.	5.500%	1/15/28	59,770		59,322
	Targa Resources Partners LP / Targa Resources Partners Finance Corp.	5.125%	2/1/25	6,340		6,522
3	Targa Resources Partners LP / Targa Resources Partners Finance Corp.	6.875%	1/15/29	37,470		41,311
2,3	Transocean Guardian Ltd.	5.875%	1/15/24	52,040		52,951
2,3	Transocean Phoenix 2 Ltd.	7.750%	10/15/24	22,523		23,930
2,3	Transocean Pontus Ltd.	6.125%	8/1/25	44,588		46,037

13

High-Yield Corporate Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
2,3	Transocean Proteus Ltd.	6.250%	12/1/24	25,944		26,949
3	Vine Oil & Gas LP / Vine Oil & Gas Finance Corp.	8.750%	4/15/23	62,530		36,893
	Whiting Petroleum Corp.	6.625%	1/15/26	106,234		99,063
	WPX Energy Inc.	6.000%	1/15/22	24,648		25,449
	WPX Energy Inc.	5.250%	9/15/24	112,100		112,380
	WPX Energy Inc.	5.750%	6/1/26	11,975		12,244
	Other Industrial (0.6%)
3	Brand Energy & Infrastructure Services Inc.	8.500%	7/15/25	104,430		91,115
4,5	Core & Main LP Bank Loan, 3M USD LIBOR + 3.000%	5.086%	8/1/24	1,641		1,639
4,5	Core & Main LP Bank Loan, 3M USD LIBOR + 3.000%	5.270%	8/1/24	3,646		3,642
4,5	Core & Main LP Bank Loan, 3M USD LIBOR + 3.000%	5.270%	8/1/24	4,075		4,070
3	KAR Auction Services Inc.	5.125%	6/1/25	66,123		68,107
	Technology (8.8%)
	Alcatel-Lucent USA Inc.	6.500%	1/15/28	56,315		57,441
	Alcatel-Lucent USA Inc.	6.450%	3/15/29	88,747		89,856
	CDK Global Inc.	5.000%	10/15/24	3,800		4,014
	CDK Global Inc.	5.875%	6/15/26	29,700		31,556
	CDK Global Inc.	4.875%	6/1/27	21,230		21,973
3	CDK Global Inc.	5.250%	5/15/29	25,050		25,927
	CDW LLC / CDW Finance Corp.	5.000%	9/1/23	31,905		32,384
	CDW LLC / CDW Finance Corp.	5.500%	12/1/24	20,655		22,359
	CDW LLC / CDW Finance Corp.	5.000%	9/1/25	31,255		32,583
4,5	Dun & Bradstreet Corp. Bank Loan, 3M USD LIBOR + 5.000%	7.181%	2/6/26	49,705		49,933
3	Dun & Bradstreet Corp.	6.875%	8/15/26	10,000		10,650
4,5,7	Dun & Bradstreet Corp. Bank Loan, 3M USD LIBOR + 5.000%	7.181%	2/8/26	58,640		58,909
6	Equinix Inc.	2.875%	2/1/26	102,180		117,994
	Equinix Inc.	5.375%	5/15/27	47,030		50,498
3	First Data Corp.	5.375%	8/15/23	73,250		75,081
3	First Data Corp.	5.000%	1/15/24	48,800		49,959
3	First Data Corp.	5.750%	1/15/24	131,820		135,445
4,5	Grizzly Acquisitions Inc. Bank Loan	5.570%	10/1/25	23,522		23,540
	Infor US Inc.	6.500%	5/15/22	97,200		98,537
3	Iron Mountain Inc.	4.375%	6/1/21	6,300		6,339
	Iron Mountain Inc.	5.750%	8/15/24	28,364		28,506
3	Iron Mountain Inc.	4.875%	9/15/27	28,670		28,527
4,5	Messer Industries Bank Loan, 3M USD LIBOR + 2.500%	4.830%	3/1/26	23,616		23,508
4,5	Microchip Technology Inc. Bank Loan, 3M USD LIBOR + 2.000%	4.240%	5/24/25	20,725		20,705
3	MSCI Inc.	5.250%	11/15/24	23,975		24,664
3	MSCI Inc.	5.750%	8/15/25	62,816		65,329
3	MSCI Inc.	4.750%	8/1/26	10,330		10,743
3	MSCI Inc.	5.375%	5/15/27	28,181		29,872
	NCR Corp.	4.625%	2/15/21	47,305		47,364
	Nokia Oyj	6.625%	5/15/39	117,400		130,021
3	Open Text Corp.	5.625%	1/15/23	34,905		35,690

14

High-Yield Corporate Fund

				Face		Market
			Maturity	Amount		Value·
		Coupon	Date	($000	)	($000	)
3	Open Text Corp.	5.875%	6/1/26	81,555		86,958
	Pitney Bowes Inc.	4.950%	4/1/23	75,805		71,446
	Pitney Bowes Inc.	4.625%	3/15/24	1,940		1,751
	Qorvo Inc.	5.500%	7/15/26	45,125		47,607
3	Sensata Technologies BV	4.875%	10/15/23	10,000		10,400
3	Sensata Technologies BV	5.625%	11/1/24	19,290		20,761
3	Sensata Technologies BV	5.000%	10/1/25	52,750		55,453
3	Sensata Technologies UK Financing Co. plc	6.250%	2/15/26	49,705		52,687
4,5	SS&C Technologies Holdings Inc. Bank Loan, 3M USD LIBOR + 2.250%	4.484%	4/16/25	18,880		18,869
4,5	SS&C Technologies Holdings Inc. Bank Loan, 3M USD LIBOR + 2.250%	4.484%	4/16/25	21,378		21,358
4,5	SS&C Technologies Holdings Inc. Bank Loan, 3M USD LIBOR + 2.250%	4.484%	4/16/25	31,399		31,370
3	SS&C Technologies Inc.	5.500%	9/30/27	120,305		125,117
3	Symantec Corp.	5.000%	4/15/25	76,296		77,590
	Western Digital Corp.	4.750%	2/15/26	78,703		77,916
3,8	Worldpay LLC / Vantiv Issuer Corp.	3.875%	11/15/25	43,820		55,776
	Xerox Corp.	2.800%	5/15/20	11,685		11,583
	Xerox Corp.	4.125%	3/15/23	25,100		25,238
	Xerox Corp.	4.800%	3/1/35	9,755		8,494
	Xerox Corp.	6.750%	12/15/39	5,000		5,025
Transportation (0.2%)
	Avis Budget Car Rental LLC / Avis Budget Finance Inc.	5.500%	4/1/23	24,054		24,505
3	Avis Budget Car Rental LLC / Avis Budget Finance Inc.	6.375%	4/1/24	24,490		25,592
						20,092,536
Utilities (1.0%)
	Electric (1.0%)
	AES Corp.	4.000%	3/15/21	20,000		20,350
	AES Corp.	4.500%	3/15/23	59,805		61,450
	AES Corp.	4.875%	5/15/23	25,000		25,406
	AES Corp.	5.500%	4/15/25	5,475		5,680
	AES Corp.	6.000%	5/15/26	920		980
	AES Corp.	5.125%	9/1/27	58,610		61,980
3	NextEra Energy Operating Partners LP	4.250%	7/15/24	34,345		34,860
3	NextEra Energy Operating Partners LP	4.250%	9/15/24	22,350		22,629
3	NextEra Energy Operating Partners LP	4.500%	9/15/27	24,185		24,246
						257,581
Total Corporate Bonds (Cost $22,974,055)						23,217,776
Sovereign Bonds (0.5%)
3	DAE Funding LLC	4.000%	8/1/20	7,170		7,215
3	DAE Funding LLC	5.250%	11/15/21	11,650		12,145
3	DAE Funding LLC	4.500%	8/1/22	48,368		49,214
3	DAE Funding LLC	5.000%	8/1/24	54,574		57,303
Total Sovereign Bonds (Cost $123,525)						125,877

15

High-Yield Corporate Fund

						Market
						Value·
		Coupon		Shares		($000	)
Preferred Stocks (0.5%)
	GMAC Capital Trust I Pfd. (Cost $123,777)	8.099%		4,743,200		124,936
Common Stocks (0.2%)
Utilities (0.2%)
§	Homer City Generation LP (Cost $41,520)			2,020,431		41,520
				Face
			Maturity	Amount
			Date	($000	)
Temporary Cash Investments (3.6%)
Repurchase Agreements (3.6%)
	Bank of America Securities, LLC (Dated 7/31/19, Repurchase Value $153,711,000, collateralized by Federal Home Loan Mortgage Corp. 3.500%, 6/1/49, and Federal National Mortgage Assn. 4.000%, 6/1/48, with a value of $156,774,000)	2.560%	8/1/19	153,700		153,700
	JP Morgan Securities LLC (Dated 7/31/19, Repurchase Value $272,719,000, collateralized by U.S. Treasury Bill/Note/Bond 0.000%–3.125%, 9/12/19–5/15/48, with a value of $278,154,000)	2.540%	8/1/19	272,700		272,700
	RBC Capital Markets LLC (Dated 7/31/19, Repurchase Value $372,226,000, collateralized by Federal Home Loan Mortgage Corp. 3.500%–4.500%, 6/1/47–3/1/49, and Federal National Mortgage Assn. 3.000%–4.500%, 11/1/32–6/1/51, with a value of $379,644,000)	2.540%	8/1/19	372,200		372,200
	TD Securities (USA) LLC (Dated 7/31/19, Repurchase Value $126,809,000, collateralized by Federal Home Loan Mortgage Corp. 4.000%, 3/1/47, and Federal National Mortgage Assn. 3.500%, 5/1/49, with a value of $129,336,000)	2.550%	8/1/19	126,800		126,800
Total Temporary Cash Investments (Cost $925,400)						925,400
Total Investments (99.5%) (Cost $25,183,409)						25,431,759

16

High-Yield Corporate Fund

	Amount
	($000)
Other Assets and Liabilities (0.5%)
Other Assets
Investment in Vanguard	1,196
Receivables for Investment Securities Sold	108,206
Receivables for Accrued Income	334,608
Receivables for Capital Shares Issued	63,740
Variation Margin Receivable—CC Swaps Contracts	51
Unrealized Appreciation—Forward Currency Contracts	4,121
Other Assets	2,877
Total Other Assets	514,799
Liabilities
Payables for Investment Securities Purchased	(329,405)
Payables for Capital Shares Redeemed	(21,970)
Payables to Investment Advisor	(1,818)
Payables for Distributions	(28,571)
Payables to Vanguard	(13,594)
Other Liabilities	(392)
Total Liabilities	(395,750)
Net Assets (100%)	25,550,808
At July 31, 2019, net assets consisted of:
	Amount
	($000)
Paid-in Capital	25,602,316
Total Distributable Earnings (Loss)	(51,508)
Net Assets	25,550,808
Investor Shares—Net Assets
Applicable to 664,644,370 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	3,897,365
Net Asset Value Per Share—Investor Shares	$5.86

17

High-Yield Corporate Fund

	Amount
	($000)
Admiral Shares–Net Assets
Applicable to 3,692,710,108 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	21,653,443
Net Asset Value Per Share–Admiral Shares	$5.86

·See Note A in Notes to Financial Statements.

§Security value determined using significant unobservable inputs.

1Securities with a value of $9,978,000 have been segregated as collateral for open cleared swap contracts.

2The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.

3Security 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 July 31, 2019, the aggregate value of these securities was $10,500,338,000, representing 41.1% of net assets.

4Security is a senior, secured, high-yield floating-rate loan. These loans are debt obligations issued by public and private companies and are comparable to high-yield bonds from a ratings and leverage perspective. At July 31, 2019, the aggregate value of these securities was $698,981,000, representing 2.7% of net assets.

5Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.

6Face amount denominated in euro.

7Security purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of July 31, 2019.

8Face amount denominated in British pounds.

CC—Centrally Cleared.

LIBOR—London Interbank Offered Rate.

18

High-Yield Corporate Fund

Derivative Financial Instruments Outstanding as of Period End

Forward Currency Contracts

	Contract					Unrealized		Unrealized
	Settlement	Contract Amount (000)				Appreciation		(Depreciation)
Counterparty	Date		Receive		Deliver	($000	)	($000)
Goldman Sachs International	8/30/19	USD	203,737	EUR	182,409	1,294		—
J.P. Morgan Securities LLC	8/30/19	USD	203,505	EUR	182,409	1,062		—
J.P. Morgan Securities LLC	8/30/19	USD	62,119	GBP	49,746	1,528		—
UBS AG	8/30/19	USD	46,483	EUR	41,670	237		—
						4,121		—

EUR—euro.

GBP—British pound.

USD—U.S. dollar.

Centrally Cleared Credit Default Swaps
					Periodic
					Premium				Unrealized
					Received				Appreciation
	Termination	Notional Amount			(Paid)		Value		(Depreciation)
Reference Entity	Date	(000		)	(%)	1	($000	)	($000)
Credit Protection Sold
CDX-NA-HY-S32-V1	6/20/24	USD	173,230		5.000		13,522		3,794

1 Periodic premium received/paid quarterly.

USD—U.S. dollar.

At July 31, 2019, counterparties had deposited in segregated accounts securities with a value of $13,191,000 in connection with open forward currency contracts.

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

19

High-Yield Corporate Fund

Statement of Operations

	Six Months Ended
	July 31, 2019
	($000)
Investment Income
Income
Dividends	5,029
Interest	675,642
Total Income	680,671
Expenses
Investment Advisory Fees—Note B	3,568
The Vanguard Group—Note C
Management and Administrative—Investor Shares	3,469
Management and Administrative—Admiral Shares	9,395
Marketing and Distribution—Investor Shares	200
Marketing and Distribution—Admiral Shares	515
Custodian Fees	111
Shareholders’ Reports—Investor Shares	37
Shareholders’ Reports—Admiral Shares	86
Trustees’ Fees and Expenses	13
Total Expenses	17,394
Net Investment Income	663,277
Realized Net Gain (Loss)
Investment Securities Sold	(65,584)
Swap Contracts	6,280
Forward Currency Contracts	17,506
Foreign Currencies	(214)
Realized Net Gain (Loss)	(42,012)
Change in Unrealized Appreciation (Depreciation)
Investment Securities	840,105
Swap Contracts	4,096
Forward Currency Contracts	8,240
Foreign Currencies	36
Change in Unrealized Appreciation (Depreciation)	852,477
Net Increase (Decrease) in Net Assets Resulting from Operations	1,473,742

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

20

High-Yield Corporate Fund

Statement of Changes in Net Assets

	Six Months Ended		Year Ended
	July 31,		January 31,
	2019		2019
	($000	)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	663,277		1,322,249
Realized Net Gain (Loss)	(42,012	)	151,778
Change in Unrealized Appreciation (Depreciation)	852,477		(1,137,081)
Net Increase (Decrease) in Net Assets Resulting from Operations	1,473,742		336,946
Distributions
Net Investment Income
Investor Shares	(101,432	)	(215,874)
Admiral Shares	(564,684	)	(1,147,877)
Realized Capital Gain
Investor Shares	—		—
Admiral Shares	—		—
Total Distributions	(666,116	)	(1,363,751)
Capital Share Transactions
Investor Shares	215,619		(421,201)
Admiral Shares	1,685,331		(576,699)
Net Increase (Decrease) from Capital Share Transactions	1,900,950		(997,900)
Total Increase (Decrease)	2,708,576		(2,024,705)
Net Assets
Beginning of Period	22,842,232		24,866,937
End of Period	25,550,808		22,842,232

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

21

High-Yield Corporate Fund

Financial Highlights

Investor Shares

	Six Months
	Ended
For a Share Outstanding	July 31,	Year Ended January 31,
Throughout Each Period	2019	2019	2018	2017	2016	2015
Net Asset Value, Beginning of Period	$5.67	$5.91	$5.86	$5.46	$5.98	$6.04
Investment Operations
Net Investment Income	.1561	.3171	.3091	.315	.327	.331
Net Realized and Unrealized Gain (Loss) on Investments	.191	(.230)	.048	.404	(.495)	(.059)
Total from Investment Operations	.347	.087	.357	.719	(.168)	.272
Distributions
Dividends from Net Investment Income	(.157)	(.327)	(.307)	(.317)	(.323)	(.332)
Distributions from Realized Capital Gains	—	—	—	(.002)	(.029)	—
Total Distributions	(.157)	(.327)	(.307)	(.319)	(.352)	(.332)
Net Asset Value, End of Period	$5.86	$5.67	$5.91	$5.86	$5.46	$5.98
Total Return2	6.19%	1.61%	6.19%	13.43%	-2.99%	4.56%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$3,897	$3,557	$4,146	$4,064	$3,604	$4,176
Ratio of Total Expenses to Average Net Assets	0.23%	0.23%	0.23%	0.23%	0.23%	0.23%
Ratio of Net Investment Income to Average Net Assets	5.45%	5.55%	5.20%	5.48%	5.61%	5.46%
Portfolio Turnover Rate	26%	21%	27%	26%	34%	35%

The expense ratio, net investment income ratio, and turnover rate 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.

22

High-Yield Corporate Fund

Financial Highlights

Admiral Shares

	Six Months
	Ended
For a Share Outstanding	July 31,	Year Ended January 31,
Throughout Each Period	2019	2019	2018	2017	2016	2015
Net Asset Value, Beginning of Period	$5.67	$5.91	$5.86	$5.46	$5.98	$6.04
Investment Operations
Net Investment Income	.1591	.3231	.3141	.320	.333	.337
Net Realized and Unrealized Gain (Loss) on Investments	.191	(.230)	.049	.404	(.495)	(.059)
Total from Investment Operations	.350	.093	.363	.724	(.162)	.278
Distributions
Dividends from Net Investment Income	(.160)	(.333)	(.313)	(.322)	(.329)	(.338)
Distributions from Realized Capital Gains	—	—	—	(.002)	(.029)	—
Total Distributions	(.160)	(.333)	(.313)	(.324)	(.358)	(.338)
Net Asset Value, End of Period	$5.86	$5.67	$5.91	$5.86	$5.46	$5.98
Total Return2	6.24%	1.71%	6.29%	13.54%	-2.90%	4.66%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$21,653	$19,285	$20,721	$17,718	$13,183	$12,879
Ratio of Total Expenses to Average Net Assets	0.13%	0.13%	0.13%	0.13%	0.13%	0.13%
Ratio of Net Investment Income to Average Net Assets	5.55%	5.65%	5.30%	5.58%	5.71%	5.56%
Portfolio Turnover Rate	26%	21%	27%	26%	34%	35%

The expense ratio, net investment income ratio, and turnover rate 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.

23

High-Yield Corporate Fund

Notes to Financial Statements

Vanguard High-Yield Corporate Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. Certain of the fund’s investments are in corporate debt instruments; the issuers’ abilities to meet their obligations may be affected by economic developments in their respective industries. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. To minimize the currency risk associated with investment in securities denominated in currencies other than the U.S. dollar, the fund attempts to hedge its currency exposures. 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.

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. Bonds and temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral. 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.

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. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency

24

High-Yield Corporate Fund

contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any assets pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized forward currency contract gains (losses).

During the six months ended July 31, 2019, the fund’s average investment in forward currency contracts represented 2% of net assets, based on the average of notional amounts at each quarter-end during the period.

4. Swap Contracts: The fund invests in credit default swaps to adjust the overall credit risk of the fund or to actively overweight or underweight credit risk to a specific issuer or group of issuers. The fund may sell credit protection through credit default swaps to simulate investments in long positions that are either unavailable or considered to be less attractively priced in the bond market. The fund may purchase credit protection through credit default swaps to reduce credit exposure to a given issuer or issuers. Under the terms of the swaps, an up-front payment may be exchanged between the seller and buyer. In addition, the seller of the credit protection receives a periodic payment of premium from the buyer that is a fixed percentage applied to a notional amount. If, for example, the reference entity is subject to a credit event (such as bankruptcy, failure to pay, or obligation acceleration) during the term of the swap, the seller agrees to either physically settle or cash settle the swap contract. If the swap is physically settled, the seller agrees to pay the buyer an amount equal to the notional amount and take delivery of a debt instrument of the reference issuer with a par amount equal to such notional amount. If the swap is cash settled, the seller agrees to pay the buyer the difference between the notional amount and the final price for the relevant debt instrument, as determined either in a market auction or pursuant to a pre-agreed-upon valuation procedure.

The notional amounts of swap contracts are not recorded in the Statement of Net Assets. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the seller of credit protection is required to take delivery (or, in a cash settled swap, pay the settlement amount

25

High-Yield Corporate Fund

determined) upon occurrence of a credit event, periodic payments are made, or the swap terminates, at which time realized gain (loss) is recorded. The net premium to be received or paid by the fund under swap contracts is accrued daily and recorded as realized gain (loss) over the life of the contract.

The primary risk associated with selling credit protection is that, upon the occurrence of a defined credit event, the market value of the debt instrument received by the fund (or, in a cash settled swap, the debt instruments used to determine the settlement payment by the fund) will be significantly less than the amount paid by the fund and, in a physically settled swap, the fund may receive an illiquid debt instrument. A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.

The fund enters into centrally cleared credit default swaps to achieve the same objectives specified with respect to the equivalent over-the-counter swaps but with less counterparty risk because a regulated clearinghouse is the counterparty instead of the clearing broker or executing broker. The clearinghouse imposes initial margin requirements to secure the fund’s performance, and requires daily settlement of variation margin representing changes in the market value of each contract. To further mitigate counterparty risk, the fund trades with a diverse group of prequalified executing brokers; monitors the financial strength of its clearing brokers, executing brokers, and clearinghouse; and has entered into agreements with its clearing brokers and executing brokers.

During the six months ended July 31, 2019, the fund’s average amounts of investments in credit protection sold and credit protection purchased represented 1% and 0% of net assets, respectively, based on the average of notional amounts at each quarter-end during the period.

5. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any repurchase agreements

26

High-Yield Corporate Fund

with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.

6. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2016–2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

7. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

8. Credit Facility: 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 that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

9. Other: Dividend income is recorded on the ex-dividend date. Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities that are amortized to the earliest call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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. Wellington Management Company LLP 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 July 31, 2019, the investment advisory fee represented an effective annual rate of 0.03% of the fund’s average net assets.

27

High-Yield Corporate Fund

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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $1,196,000, representing 0.00% of the fund’s net assets and 0.48% of Vanguard’s capitalization. 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 Statement of Net Assets.

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1		Level 2		Level 3
Investments	($000	)	($000	)	($000)
U.S. Government and Agency Obligations	—		996,250		—
Corporate Bonds	—		23,217,776		—
Sovereign Bonds	—		125,877		—
Preferred Stocks	—		124,936		—
Common Stocks	—		—		41,520
Temporary Cash Investments	—		925,400		—
Forward Currency Contracts—Assets	—		4,121		—
Swap Contracts—Assets1	51		—		—
Total	51		25,394,360		41,520

1 Represents variation margin on the last day of the reporting period.

28

High-Yield Corporate Fund

E. At July 31, 2019, the fair values of derivatives were reflected in the Statement of Net Assets as follows:

	Currency		Credit
	Contracts		Contracts		Total
Statement of Net Assets Caption	($000	)	($000	)	($000)
Variation Margin Receivable—CC Swap Contracts	—		51		51
Unrealized Appreciation—Forward Currency Contracts	4,121		—		4,121
Total Assets	4,121		51		4,172

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended July 31, 2019, were:

	Currency		Credit
	Contracts		Contracts		Total
Realized Net Gain (Loss) on Derivatives	($000	)	($000	)	($000)
Swap Contracts	—		6,280		6,280
Forward Currency Contracts	17,506		—		17,506
Realized Net Gain (Loss) on Derivatives	17,506		6,280		23,786
Change in Unrealized Appreciation (Depreciation) on Derivatives
Swap Contracts	—		4,096		4,096
Forward Currency Contracts	8,240		—		8,240
Change in Unrealized Appreciation (Depreciation) on Derivatives	8,240		4,096		12,336

F. As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000)
Tax Cost	25,165,030
Gross Unrealized Appreciation	751,756
Gross Unrealized Depreciation	(477,112)
Net Unrealized Appreciation (Depreciation)	274,644

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $301,724,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

29

High-Yield Corporate Fund

G. During the six months ended July 31, 2019, the fund purchased $3,562,455,000 of investment securities and sold $2,626,965,000 of investment securities, other than U.S. government securities and temporary cash investments. Purchases and sales of U.S. government securities were $247,686,000 and $250,000,000, respectively.

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

	Six Months Ended				Year Ended
	July 31, 2019				January 31, 2019
	Amount		Shares		Amount		Shares
	($000	)	(000	)	($000	)	(000)
Investor Shares
Issued	580,698		100,350		679,181		118,997
Issued in Lieu of Cash Distributions	85,722		14,797		181,417		31,875
Redeemed	(450,801	)	(77,971	)	(1,281,799	)	(224,647)
Net Increase (Decrease)—Investor Shares	215,619		37,176		(421,201	)	(73,775)
Admiral Shares
Issued	2,969,036		512,877		3,993,184		701,012
Issued in Lieu of Cash Distributions	411,852		71,089		857,979		150,769
Redeemed	(1,695,557	)	(293,477	)	(5,427,862	)	(954,321)
Net Increase (Decrease)—Admiral Shares	1,685,331		290,489		(576,699	)	(102,540)

I. Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

30

Trustees Approve Advisory Arrangement

The board of trustees of Vanguard High-Yield Corporate Fund has renewed the fund’s investment advisory arrangement with Wellington Management Company LLP (Wellington Management). 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 decisions 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 monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.

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

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 Wellington Management, founded in 1928, is among the nation’s oldest and most respected institutional investment managers. The portfolio manager has the support of an experienced team of fixed income research analysts who conduct detailed credit analysis. The advisor focuses on higher-quality high-yield bonds, as it expects these higher-quality issues to offer a more favorable risk/reward tradeoff over the long-term. The team’s credit analysis seeks to identify companies whose fundamentals are stable or improving and whose securities offer an attractive yield. The firm has managed the High-Yield Corporate Fund since its inception.

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.

31

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 Wellington Management in determining whether to approve the advisory fee because Wellington Management 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 the breakpoints in the fund’s advisory fee schedule with Wellington Management. 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.

32

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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.

© 2019 The Vanguard Group, Inc.

All rights reserved.

Vanguard Marketing Corporation, Distributor.

Q292 092019

Semiannual Report  |  July 31, 2019

Vanguard Real Estate Index Funds

Vanguard Real Estate Index Fund

Vanguard Real Estate II Index Fund

See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.

Important information about access to shareholder reports

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.

If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.

You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.

Contents

About Your Fund’s Expenses	1
Real Estate Index Fund	3
Real Estate II Index Fund	24
Trustees Approve Advisory Arrangements	38

About Your Fund’s Expenses

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

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

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

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

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

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

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

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

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

1

Six Months Ended July 31, 2019
	Beginning Account Value 1/31/2019	Ending Account Value 7/31/2019	Expenses Paid During Period
Based on Actual Fund Return
Real Estate Index Fund
Investor Shares	$1,000.00	$1,083.85	$1.34
ETF Shares	1,000.00	1,084.46	0.62
Admiral™ Shares	1,000.00	1,084.75	0.62
Institutional Shares	1,000.00	1,085.36	0.52
Real Estate II Index Fund	$1,000.00	$1,085.17	$0.41
Based on Hypothetical 5% Yearly Return
Real Estate Index Fund
Investor Shares	$1,000.00	$1,023.51	$1.30
ETF Shares	1,000.00	1,024.20	0.60
Admiral Shares	1,000.00	1,024.20	0.60
Institutional Shares	1,000.00	1,024.30	0.50
Real Estate II Index Fund	$1,000.00	$1,024.40	$0.40

The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for that period are: for the Real Estate Index Fund, 0.26% for Investor Shares, 0.12% for ETF Shares, 0.12% for Admiral Shares, and 0.10% for Institutional Shares; and for the Real Estate II Index Fund, 0.08%. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (181/365).

2

Real Estate Index Fund

Sector Diversification

As of July 31, 2019

Diversified Real Estate Activities	0.2%
Diversified REITs	5.0
Health Care REITs	9.6
Hotel & Resort REITs	4.3
Industrial REITs	7.9
Office REITs	9.5
Real Estate Development	0.5
Real Estate Operating Companies	0.3
Real Estate Services	2.6
Residential REITs	14.5
Retail REITs	12.7
Specialized REITs	32.9

The table reflects the fund’s equity exposure, based on its investments in stocks and stock index futures. Any holdings in short-term reserves are excluded. 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.

3

Real Estate Index Fund

Financial Statements (unaudited)

Statement of Net Assets

As of July 31, 2019

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	)
Equity Real Estate Investment Trusts (REITs) (96.5%)1
Diversified REITs (4.4%)
	WP Carey Inc.	8,076,340	698,926
	VEREIT Inc.	42,650,536	388,973
	Liberty Property Trust	7,192,610	376,173
	STORE Capital Corp.	9,825,560	336,132
	PS Business Parks Inc.	998,943	174,815
	Colony Capital Inc.	22,633,317	127,878
	American Assets Trust Inc.	2,375,088	110,204
	Washington REIT	3,882,478	104,633
	Lexington Realty Trust	10,273,323	101,398
	Empire State Realty Trust Inc.	7,227,481	101,257
	Global Net Lease Inc.	4,080,416	79,650
	Alexander & Baldwin Inc.	3,334,227	78,388
	Essential Properties Realty Trust Inc.	3,544,555	74,861
^,2	iStar Inc.	3,321,252	43,841
	Armada Hoffler Properties Inc.	2,445,099	41,396
	Gladstone Commercial Corp.	1,428,524	30,370
	One Liberty Properties Inc.	705,620	20,223
§,2	Winthrop Realty Trust	1,892,511	2,061
			2,891,179
Health Care REITs (8.5%)
	Welltower Inc.	18,786,007	1,561,493
	Ventas Inc.	17,318,529	1,165,364
	HCP Inc.	23,229,699	741,724
^,2	Omega Healthcare Investors Inc.	10,426,328	378,476
	Medical Properties Trust Inc.	21,367,681	373,934
	Healthcare Trust of America Inc. Class A	9,984,063	268,871
	Healthcare Realty Trust Inc.	6,090,134	194,762
	Sabra Health Care REIT Inc.	8,669,770	178,944
	National Health Investors Inc.	2,076,487	164,832
	Physicians Realty Trust	8,872,353	152,693
	CareTrust REIT Inc.	4,324,134	100,450
	Senior Housing Properties Trust	11,567,136	94,851
	LTC Properties Inc.	1,926,342	88,785
	Universal Health Realty Income Trust	636,984	58,704
	Community Healthcare Trust Inc.	872,598	35,855
	New Senior Investment Group Inc.	3,998,156	28,507
			5,588,245
Hotel & Resort REITs (3.8%)
	Host Hotels & Resorts Inc.	36,000,073	626,041
	Park Hotels & Resorts Inc.	9,800,601	258,834
	Hospitality Properties Trust	8,003,698	197,771
	Ryman Hospitality Properties Inc.	2,371,391	177,854
	Pebblebrook Hotel Trust	6,337,894	177,398
	Apple Hospitality REIT Inc.	10,343,398	162,495
	RLJ Lodging Trust	8,530,235	147,402
	Sunstone Hotel Investors Inc.	11,110,234	146,766
	MGM Growth Properties LLC Class A	4,401,260	131,422
	Xenia Hotels & Resorts Inc.	5,485,172	117,547
	DiamondRock Hospitality Co.	9,790,534	98,591
	Chesapeake Lodging Trust	2,957,931	81,254

4

Real Estate Index Fund

			Market
			Value·
		Shares	($000	)
	Summit Hotel Properties Inc.	5,092,980	56,583
	Chatham Lodging Trust	2,261,507	40,391
	Hersha Hospitality Trust Class A	1,806,660	28,220
	CorePoint Lodging Inc.	2,028,036	23,789
	Ashford Hospitality Trust Inc.	4,655,349	12,616
	Braemar Hotels & Resorts Inc.	1,356,053	12,367
			2,497,341
Industrial REITs (7.0%)
	Prologis Inc.	30,648,038	2,470,538
	Duke Realty Corp.	17,466,091	582,145
	Americold Realty Trust	8,502,022	285,073
	First Industrial Realty Trust Inc.	6,160,666	235,276
	EastGroup Properties Inc.	1,775,071	213,861
	Rexford Industrial Realty Inc.	4,709,131	194,958
	STAG Industrial Inc.	5,475,783	162,740
	Terreno Realty Corp.	2,971,540	145,189
	Hannon Armstrong Sustainable Infrastructure Capital Inc.	3,014,089	82,737
	Industrial Logistics Properties Trust	3,160,100	67,563
	Monmouth Real Estate Investment Corp.	4,280,734	59,031
^	Innovative Industrial Properties Inc.	538,761	56,931
			4,556,042
Office REITs (8.4%)
	Boston Properties Inc.	7,510,409	998,509
	Alexandria Real Estate Equities Inc.	5,480,314	802,099
	Vornado Realty Trust	8,338,012	536,301
	Kilroy Realty Corp.	4,910,298	390,172
	SL Green Realty Corp.	4,071,026	330,079
	Douglas Emmett Inc.	7,864,302	321,021
	Hudson Pacific Properties Inc.	7,508,011	265,033
	Cousins Properties Inc.	7,066,176	248,588
	Highwoods Properties Inc.	5,035,773	228,271
	JBG SMITH Properties	5,659,458	221,454
	Equity Commonwealth	5,911,058	198,493
	Corporate Office Properties Trust	5,357,757	149,588
	Piedmont Office Realty Trust Inc. Class A	6,103,266	127,009
	Brandywine Realty Trust	8,544,465	126,031
	Paramount Group Inc.	9,072,228	125,469
	Columbia Property Trust Inc.	5,679,466	124,551
	Mack-Cali Realty Corp.	4,390,697	104,411
	Office Properties Income Trust	2,339,791	65,912
	Easterly Government Properties Inc.	2,959,622	55,848
	Franklin Street Properties Corp.	5,225,571	42,118
	NorthStar Realty Europe Corp.	1,937,340	32,935
	City Office REIT Inc.	1,923,262	23,810
^,§,*	New York REIT Liquidating LLC	1,208	16
			5,517,718
Other (11.1%)3
4,5	Vanguard Real Estate II Index Fund	339,138,157	7,290,230
Residential REITs (12.9%)
	Equity Residential	17,987,829	1,419,060
	AvalonBay Communities Inc.	6,734,719	1,406,142
	Essex Property Trust Inc.	3,194,307	965,383
	Mid-America Apartment Communities Inc.	5,537,788	652,573
	UDR Inc.	13,401,971	617,295
	Invitation Homes Inc.	21,661,572	595,043
	Sun Communities Inc.	4,199,191	557,695
	Equity LifeStyle Properties Inc.	4,153,730	516,101
	Camden Property Trust	4,698,783	487,311
	Apartment Investment & Management Co.	7,175,692	355,484
	American Homes 4 Rent Class A	12,959,003	313,738
	American Campus Communities Inc.	6,662,009	311,449
	Independence Realty Trust Inc.	4,335,584	53,544
	NexPoint Residential Trust Inc.	915,449	39,511
	Investors Real Estate Trust	571,138	36,410
	Front Yard Residential Corp.	2,477,537	29,755
	Preferred Apartment Communities Inc. Class A	2,027,221	29,374
	UMH Properties Inc.	1,645,175	21,634
			8,407,502

5

Real Estate Index Fund

			Market
			Value·
		Shares	($000	)
Retail REITs (11.3%)
	Simon Property Group Inc.	15,022,321	2,436,621
	Realty Income Corp.	14,771,046	1,022,304
	Regency Centers Corp.	7,726,323	515,346
	Federal Realty Investment Trust	3,356,672	443,114
^	National Retail Properties Inc.	7,858,834	410,546
	Kimco Realty Corp.	20,484,975	393,516
	Brixmor Property Group Inc.	14,522,595	275,639
	Spirit Realty Capital Inc.	4,186,906	184,726
	Macerich Co.	5,490,836	181,472
	Weingarten Realty Investors	5,924,892	165,364
	Retail Properties of America Inc.	10,374,442	126,153
	Agree Realty Corp.	1,824,602	121,975
	Taubman Centers Inc.	2,973,898	120,502
	Acadia Realty Trust	3,962,740	111,234
	SITE Centers Corp.	7,025,366	100,111
	Urban Edge Properties	5,551,221	92,872
	Retail Opportunity Investments Corp.	5,005,848	90,806
^	Tanger Factory Outlet Centers Inc.	4,562,291	72,449
	Kite Realty Group Trust	4,084,621	64,986
^	Seritage Growth Properties Class A	1,351,531	56,453
^	American Finance Trust Inc.	4,386,989	51,372
	Getty Realty Corp.	1,687,637	50,595
	RPT Realty	3,898,003	47,751
	Alexander’s Inc.	111,740	41,847
	Saul Centers Inc.	663,021	36,327
^	Washington Prime Group Inc.	9,055,755	32,872
	Urstadt Biddle Properties Inc. Class A	1,451,993	31,349
	Retail Value Inc.	715,903	26,947
	Whitestone REIT	1,749,123	22,301
^	Pennsylvania REIT	3,279,069	19,609
	Spirit MTA REIT	2,088,709	17,566
	Cedar Realty Trust Inc.	4,309,424	11,980
	Urstadt Biddle Properties Inc.	24,039	401
			7,377,106
Specialized REITs (29.1%)
	American Tower Corp.	21,449,426	4,539,128
	Crown Castle International Corp.	20,205,905	2,692,639
	Equinix Inc.	3,924,831	1,970,658
	Public Storage	7,636,440	1,853,822
*	SBA Communications Corp. Class A	5,466,727	1,341,590
	Digital Realty Trust Inc.	9,870,682	1,128,811
	Weyerhaeuser Co.	36,295,130	922,259
	Extra Space Storage Inc.	6,190,026	695,697
	Iron Mountain Inc.	13,919,793	409,381
	Gaming and Leisure Properties Inc.	9,911,916	373,778
	VICI Properties Inc.	16,675,066	355,846
	Lamar Advertising Co. Class A	4,140,913	335,083
	CubeSmart	9,098,936	308,909
	CyrusOne Inc.	5,263,259	302,111
	EPR Properties	3,614,306	269,013
	Life Storage Inc.	2,266,673	220,978
	CoreSite Realty Corp.	1,784,585	187,042
	Outfront Media Inc.	6,840,808	185,933
	Rayonier Inc.	6,300,481	182,966
	QTS Realty Trust Inc. Class A	2,677,041	123,893
	PotlatchDeltic Corp.	3,301,907	121,576
	GEO Group Inc.	5,871,227	104,567
	CoreCivic Inc.	5,772,806	97,965
	Four Corners Property Trust Inc.	3,320,671	89,459
	National Storage Affiliates Trust	2,753,891	83,415
^	Uniti Group Inc.	8,700,163	73,255
^	CorEnergy Infrastructure Trust Inc.	621,357	25,146
	CatchMark Timber Trust Inc. Class A	2,399,707	24,381
	Jernigan Capital Inc.	991,674	19,675
	Farmland Partners Inc.	672	4
			19,038,980
Total Equity Real Estate Investment Trusts (REITs) (Cost $53,728,395)			63,164,343
Real Estate Management & Development (3.2%)1
Diversified Real Estate Activities (0.2%)
	RMR Group Inc. Class A	739,762	36,426
*	St. Joe Co.	1,754,656	33,760
*	Tejon Ranch Co.	1,072,792	19,879
*	Five Point Holdings LLC Class A	2,421,390	18,911
			108,976
Real Estate Development (0.4%)
*	Howard Hughes Corp.	1,985,395	268,028
*	Forestar Group Inc.	508,989	10,516
			278,544

6

Real Estate Index Fund

			Market
			Value·
		Shares	($000	)
Real Estate Operating Companies (0.2%)
	Kennedy-Wilson Holdings Inc.	6,265,093	134,825
*	FRP Holdings Inc.	342,358	16,974
			151,799
Real Estate Services (2.4%)
*	CBRE Group Inc. Class A	15,745,166	834,651
	Jones Lang LaSalle Inc.	2,503,787	364,777
*	Cushman & Wakefield plc	4,745,611	94,153
^,*	Redfin Corp.	3,521,839	63,534
	Newmark Group Inc. Class A	6,410,974	63,212
*	Marcus & Millichap Inc.	1,130,770	37,542
^	Realogy Holdings Corp.	5,516,403	28,741
	RE/MAX Holdings Inc. Class A	861,876	25,063
^,*	eXp World Holdings Inc.	849,789	8,982
^,*	Altisource Portfolio Solutions SA	342,399	7,190
			1,527,845
Total Real Estate Management & Development (Cost $1,998,148)			2,067,164
Temporary Cash Investment (1.2%)1
Money Market Fund (1.2%)
6,7	Vanguard Market Liquidity Fund, 2.386% (Cost $802,937)	8,029,031	802,983
Total Investments (100.9%) (Cost $56,529,480)			66,034,490
Other Assets and Liabilities (-0.9%)
Other Assets8			87,766
Liabilities7			(673,203	)
			(585,437	)
Net Assets (100%)			65,449,053

	Amount
	($000	)
Statement of Assets and Liabilities
Assets
Investments in Securities, at Value
Unaffiliated Issuers	57,516,899
Affiliated Issuers	1,227,361
Vanguard Real Estate II Index Fund	7,290,230
Total Investments in Securities	66,034,490
Investment in Vanguard	3,066
Receivables for Investment Securities Sold	12,559
Receivables for Accrued Income	29,993
Receivables for Capital Shares Issued	40,373
Unrealized Appreciation—OTC Swap Contracts	575
Collateral for OTC Swap Contracts	1,200
Total Assets	66,122,256
Liabilities
Payables for Investment Securities Purchased	(33,123	)
Collateral for Securities on Loan	(590,991	)
Payables for Capital Shares Redeemed	(21,958	)
Payables to Vanguard	(18,553	)
Unrealized Depreciation—OTC Swap Contracts	(2,722	)
Other Liabilities	(5,856	)
Total Liabilities	(673,203	)
Net Assets (100%)	65,449,053

7

Real Estate Index Fund

At July 31, 2019, net assets consisted of:

	Amount
	($000	)
Paid-in Capital	57,722,611
Total Distributable Earnings (Loss)	7,726,442
Net Assets	65,449,053
Investor Shares—Net Assets
Applicable to 8,038,444 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	237,495
Net Asset Value Per Share—Investor Shares	$29.54
ETF Shares—Net Assets
Applicable to 389,981,471 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	34,678,680
Net Asset Value Per Share—ETF Shares	$88.92
Admiral Shares—Net Assets
Applicable to 170,629,907 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	21,504,332
Net Asset Value Per Share—Admiral Shares	$126.03
Institutional Shares—Net Assets
Applicable to 462,852,392 outstanding $.001 par value shares of beneficial interest (unlimited authorization)	9,028,546
Net Asset Value Per Share—Institutional Shares	$19.51

·See Note A in Notes to Financial Statements.

^Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $563,018,000.

§Security value determined using significant unobservable inputs.

*Non-income-producing security.

1The fund invests a portion of its assets in investment securities through the use of swap contracts. After giving effect to swap investments, the fund’s effective investment securities and temporary cash investment positions represent 100.0% and 0.9%, respectively, of net assets.

2Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. The total value of affiliated companies is $424,378,000.

3“Other” represents securities that are not classified by the fund’s benchmark index.

4Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.

5Represents a wholly owned subsidiary of the fund. See accompanying financial statements for Vanguard Real Estate II Index Fund’s Statement of Net Assets.

6Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

7Includes $590,991,000 of collateral received for securities on loan.

8Cash of $1,200,000 has been segregated as collateral for open over-the-counter swap contracts.

REIT—Real Estate Investment Trust.

OTC—Over-the-Counter.

8

Real Estate Index Fund

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps

				Floating
				Interest
				Rate	Value and	Value and
			Notional	Received	Unrealized	Unrealized
	Termination		Amount	(Paid)1	Appreciation	(Depreciation	)
Reference Entity	Date	Counterparty	($000)	(%)	($000)	($000	)
Digital Realty Trust Inc.	2/4/20	GSI	7,584	(2.237)	192	—
Digital Realty Trust Inc.	2/4/20	GSI	6,228	(2.234)	176	—
Digital Realty Trust Inc.	2/4/20	GSI	6,270	(2.230)	20	—
Digital Realty Trust Inc.	2/4/20	GSI	6,290	(2.224)	—	—
Federal Realty Investment Trust	2/4/20	GSI	34,245	(2.314)	47	—
Regency Centers Corp.	2/4/20	GSI	28,619	(2.314)	—	(631	)
Retail Opportunities Investment Corp.	2/4/20	GSI	9,466	(2.314)	140	—
Seritage Growth Properties Class A	2/4/20	GSI	12,624	(2.314)	—	(104	)
VEREIT Inc.	2/4/20	GSI	40,392	(2.314)	—	(300	)
VICI Properties Inc.	2/4/20	GSI	65,670	(2.271)	—	(1,687	)
					575	(2,722	)

GSI—Goldman Sachs International.

1Payment received/paid monthly.

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

9

Real Estate Index Fund

Statement of Operations

	Six Months Ended
	July 31, 2019
	($000)
Investment Income
Income
Dividends—Unaffiliated Issuers	764,055
Dividends—Affiliated Issuers	50,131
Dividends—Vanguard Real Estate II Index Fund	102,332
Interest—Unaffiliated Issuers	4
Interest—Affiliated Issuers	4,034
Securities Lending—Net	1,853
Total Income	922,409
Expenses
The Vanguard Group—Note B
Investment Advisory Services	1,704
Management and Administrative—Investor Shares	2,009
Management and Administrative—ETF Shares	16,957
Management and Administrative—Admiral Shares	9,952
Management and Administrative—Institutional Shares	3,746
Marketing and Distribution—Investor Shares	75
Marketing and Distribution—ETF Shares	759
Marketing and Distribution—Admiral Shares	438
Marketing and Distribution—Institutional Shares	136
Custodian Fees	66
Shareholders’ Reports—Investor Shares	15
Shareholders’ Reports—ETF Shares	578
Shareholders’ Reports—Admiral Shares	126
Shareholders’ Reports—Institutional Shares	32
Trustees’ Fees and Expenses	14
Total Expenses	36,607
Expenses Paid Indirectly	(64)
Net Expenses	36,543
Net Investment Income	885,866
Realized Net Gain (Loss)
Capital Gain Distributions Received—Unaffiliated Issuers	104,847
Capital Gain Distributions Received—Affiliated Issuers	1,006
Capital Gain Distributions Received—Vanguard Real Estate II Index Fund	—
Investment Securities Sold—Unaffiliated Issuers1	1,041,613
Investment Securities Sold—Affiliated Issuers1	(38,762)
Investment Securities Sold—Vanguard Real Estate II Index Fund	—

10

Real Estate Index Fund

Statement of Operations (continued)
	Six Months Ended
	July 31, 2019
	($000)
Futures Contracts	434
Swap Contracts	9,912
Realized Net Gain (Loss)	1,119,050
Change in Unrealized Appreciation (Depreciation)
Investment Securities—Unaffiliated Issuers	2,662,348
Investment Securities—Affiliated Issuers	(5,922)
Investment Securities—Vanguard Real Estate II Index Fund	468,434
Swap Contracts	(2,147)
Change in Unrealized Appreciation (Depreciation)	3,122,713
Net Increase (Decrease) in Net Assets Resulting from Operations	5,127,629

1Includes $1,227,907,000 of net gain (loss) resulting from in-kind redemptions, such gain (loss) is not taxable to the fund.

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

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Real Estate Index Fund

Statement of Changes in Net Assets

	Six Months Ended	Year Ended
	July 31,	January 31,
	2019	2019
	($000)	($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	885,866	1,817,544
Realized Net Gain (Loss)	1,119,050	924,880
Change in Unrealized Appreciation (Depreciation)	3,122,713	2,345,988
Net Increase (Decrease) in Net Assets Resulting from Operations	5,127,629	5,088,412
Distributions
Net Investment Income
Investor Shares	(25,833)	(62,454)
ETF Shares	(559,009)	(1,028,975)
Admiral Shares	(321,897)	(579,344)
Institutional Shares	(147,721)	(269,632)
Realized Capital Gain
Investor Shares	—	—
ETF Shares	—	—
Admiral Shares	—	—
Institutional Shares	—	—
Return of Capital
Investor Shares	—	(20,882)
ETF Shares	—	(344,053)
Admiral Shares	—	(193,713)
Institutional Shares	—	(90,156)
Total Distributions	(1,054,460)	(2,589,209)
Capital Share Transactions
Investor Shares	(1,740,798)	(355,274)
ETF Shares	1,662,512	(2,701,593)
Admiral Shares	2,039,846	(367,595)
Institutional Shares	257,658	(371,447)
Net Increase (Decrease) from Capital Share Transactions	2,219,218	(3,795,909)
Total Increase (Decrease)	6,292,387	(1,296,706)
Net Assets
Beginning of Period	59,156,666	60,453,372
End of Period	65,449,053	59,156,666

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

12

Real Estate Index Fund

Financial Highlights

Investor Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019	2019		2018	2017	2016	2015
Net Asset Value, Beginning of Period	$27.69	$26.40		$27.38	$25.59	$28.73	$22.37
Investment Operations
Net Investment Income	.3461	.7871		.7611	.746	.711	.645
Net Realized and Unrealized Gain (Loss) on Investments	1.959	1.639		(.614)	2.324	(2.851)	6.650
Total from Investment Operations	2.305	2.426		.147	3.070	(2.140)	7.295
Distributions
Dividends from Net Investment Income	(.455)	(.851)		(.788)	(.752)	(.695)	(.624)
Distributions from Realized Capital Gains	—	—		(.011)	(.187)	—	—
Return of Capital	—	(.285)		(.328)	(.341)	(.305)	(.311)
Total Distributions	(.455)	(1.136)		(1.127)	(1.280)	(1.000)	(.935)
Net Asset Value, End of Period	$29.54	$ 27.69		$26.40	$27.38	$25.59	$28.73
Total Return2	8.39%	9.53%		0.45%	12.07%	-7.44%	33.29%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$237	$1,871		$2,143	$2,603	$2,621	$3,231
Ratio of Total Expenses to Average Net Assets	0.26%	0.25%		0.26%	0.26%	0.26%	0.26%
Ratio of Net Investment Income to Average Net Assets	2.66%	3.02%		2.87%	2.60%	2.66%	2.56%
Portfolio Turnover Rate3	7%	24%		6%	7%	11%	8%

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

1Calculated based on average shares outstanding.

2Total 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.

3Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

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

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Real Estate Index Fund

Financial Highlights

ETF Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019	2019		2018	2017	2016	2015
Net Asset Value, Beginning of Period	$83.36	$79.47		$82.43	$77.05	$86.49	$67.36
Investment Operations
Net Investment Income	1.2091	2.4871		2.4991	2.334	2.217	2.011
Net Realized and Unrealized Gain (Loss) on Investments	5.794	4.934		(1.945)	7.022	(8.533)	20.038
Total from Investment Operations	7.003	7.421		.554	9.356	(6.316)	22.049
Distributions
Dividends from Net Investment Income	(1.443)	(2.646)		(2.458)	(2.353)	(2.170)	(1.947)
Distributions from Realized Capital Gains	—	—		(.034)	(.563)	—	—
Return of Capital	—	(.885)		(1.022)	(1.060)	(.954)	(.972)
Total Distributions	(1.443)	(3.531)		(3.514)	(3.976)	(3.124)	(2.919)
Net Asset Value, End of Period	$88.92	$83.36		$79.47	$82.43	$77.05	$86.49
Total Return	8.45%	9.70%		0.59%	12.25%	-7.31%	33.41%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$34,679	$30,857		$32,377	$33,527	$27,007	$29,487
Ratio of Total Expenses to Average Net Assets	0.12%	0.12%		0.12%	0.12%	0.12%	0.12%
Ratio of Net Investment Income to Average Net Assets	2.80%	3.15%		3.01%	2.74%	2.80%	2.70%
Portfolio Turnover Rate2	7%	24%		6%	7%	11%	8%

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

1Calculated based on average shares outstanding.

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

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

14

Real Estate Index Fund

Financial Highlights

Admiral Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019	2019		2018	2017	2016	2015
Net Asset Value, Beginning of Period	$118.14	$112.63		$116.83	$109.19	$122.58	$95.46
Investment Operations
Net Investment Income	1.7401	3.5071		3.5381	3.306	3.142	2.852
Net Realized and Unrealized Gain (Loss) on Investments	8.196	7.008		(2.761)	9.966	(12.105)	28.403
Total from Investment Operations	9.936	10.515		.777	13.272	(8.963)	31.255
Distributions
Dividends from Net Investment Income	(2.046)	(3.751)		(3.483)	(3.333)	(3.076)	(2.758)
Distributions from Realized Capital Gains	—	—		(.048)	(.798)	—	—
Return of Capital	—	(1.254)		(1.447)	(1.501)	(1.351)	(1.377)
Total Distributions	(2.046)	(5.005)		(4.978)	(5.632)	(4.427)	(4.135)
Net Asset Value, End of Period	$126.03	$118.14		$112.63	$116.83	$109.19	$122.58
Total Return2	8.47%	9.69%		0.58%	12.23%	-7.30%	33.46%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$21,504	$18,223		$17,757	$18,337	$15,029	$15,725
Ratio of Total Expenses to Average Net Assets	0.12%	0.11%		0.12%	0.12%	0.12%	0.12%
Ratio of Net Investment Income to Average Net Assets	2.80%	3.16%		3.01%	2.74%	2.80%	2.70%
Portfolio Turnover Rate3	7%	24%		6%	7%	11%	8%

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

1Calculated based on average shares outstanding.

2Total 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.

3Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.

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

15

Real Estate Index Fund

Financial Highlights

Institutional Shares

	Six Months
	Ended
For a Share Outstanding	July 31,		Year Ended January 31,
Throughout Each Period	2019	2019		2018	2017	2016	2015
Net Asset Value, Beginning of Period	$18.28	$17.43		$18.08	$16.90	$18.97	$14.78
Investment Operations
Net Investment Income	.2671	.5431		.5681	.515	.489	.444
Net Realized and Unrealized Gain (Loss) on Investments	1.282	1.085		(.444)	1.540	(1.870)	4.390
Total from Investment Operations	1.549	1.628		.124	2.055	(1.381)	4.834
Distributions
Dividends from Net Investment Income	(.319)	(.583)		(.542)	(.519)	(.479)	(.430)
Distributions from Realized Capital Gains	—	—		(.007)	(.123)	—	—
Return of Capital	—	(.195)		(.225)	(.233)	(.210)	(.214)
Total Distributions	(.319)	(.778)		(.774)	(.875)	(.689)	(.644)
Net Asset Value, End of Period	$19.51	$18.28		$17.43	$18.08	$16.90	$18.97
Total Return	8.54%	9.70%		0.60%	12.23%	-7.27%	33.43%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$9,029	$8,206		$8,176	$7,799	$6,785	$6,788
Ratio of Total Expenses to Average Net Assets	0.10%	0.09%		0.10%	0.10%	0.10%	0.10%
Ratio of Net Investment Income to Average Net Assets	2.82%	3.18%		3.03%	2.76%	2.82%	2.72%
Portfolio Turnover Rate2	7%	24%		6%	7%	11%	8%

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

1Calculated based on average shares outstanding.

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

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

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Real Estate Index Fund

Notes to Financial Statements

Vanguard Real Estate Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers four classes of shares: Investor Shares, ETF Shares, Admiral Shares and Institutional Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.

As a part of its principal investment strategy, the fund attempts to replicate its benchmark index by investing all, or substantially all, of its assets—either directly or indirectly through a wholly owned subsidiary—in the stocks that make up the index. Vanguard Real Estate II Index Fund is the wholly owned subsidiary in which the fund has invested a portion of its assets. For additional financial information about the Real Estate II Index Fund, refer to the accompanying financial statements.

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

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

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

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

17

Real Estate Index Fund

During the six months ended July 31, 2019, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period. The fund had no open futures contracts at July 31, 2019.

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

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

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

During the six months ended July 31, 2019, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.

4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2016–2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

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Real Estate Index Fund

5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. The portion of distributions that exceeds a fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

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

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

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

8. Other: Distributions received from investment securities are recorded on the ex-dividend date. Each investment security reports annually the tax character of its distributions. Dividend income, capital gain distributions received, and unrealized appreciation (depreciation) reflect the amounts of taxable income, capital gain, and return of capital reported by the investment securities, and management’s estimates of such amounts for investment security distributions for which actual information has not been reported. Income, capital gain, and return of capital distributions received from affiliated Vanguard funds are recorded on ex-dividend date. Premiums and discounts on debt securities are amortized and accreted, respectively, to interest income over the lives of the respective securities, except for premiums on certain callable debt securities which are amortized to the earliest

19

Real Estate Index Fund

call date. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

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

B.   In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Assets and Liabilities. All other costs of operations payable to Vanguard are generally settled twice a month.

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $3,066,000, representing 0.00% of the fund’s net assets and 1.23% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

C.   The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the period ended July 31, 2019, custodian fee offset arrangements reduced the fund’s expenses by $64,000 (an annual rate of 0.00% of average net assets).

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 Statement of Net Assets.

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Real Estate Index Fund

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1	Level 2	Level 3
Investments	($000)	($000)	($000)
Common Stocks	65,229,430	—	2,077
Temporary Cash Investments	802,983	—	—
Swap Contracts—Assets	—	575	—
Swap Contracts—Liabilities	—	(2,722)	—
Total	66,032,413	(2,147)	2,077

E.   As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000)
Tax Cost	56,529,480
Gross Unrealized Appreciation	12,584,194
Gross Unrealized Depreciation	(3,081,331)
Net Unrealized Appreciation (Depreciation)	9,502,863

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $1,574,736,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

F.   During the six months ended July 31, 2019, the fund purchased $8,709,124,000 of investment securities and sold $6,330,797,000 of investment securities, other than temporary cash investments. Purchases and sales include $5,769,587,000 and $4,258,480,000, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.

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Real Estate Index Fund

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

	Six Months Ended July 31, 2019			Year Ended January 31, 2019
	Amount($000	)	Shares (000)	Amount($000	)	Shares(000	)
Investor Shares
Issued	376,099		12,987	202,254		7,803
Issued in Lieu of Cash Distributions	23,989		838	77,560		2,978
Redeemed1	(2,140,886	)	(73,360)	(635,088	)	(24,392	)
Net Increase (Decrease)—Investor Shares	(1,740,798	)	(59,535)	(355,274	)	(13,611	)
ETF Shares
Issued	5,959,901		69,401	8,087,624		102,051
Issued in Lieu of Cash Distributions	—		—	—		—
Redeemed	(4,297,389	)	(49,600)	(10,789,217	)	(139,300	)
Net Increase (Decrease)—ETF Shares	1,662,512		19,801	(2,701,593	)	(37,249	)
Admiral Shares
Issued1	3,360,352		27,106	2,761,716		24,919
Issued in Lieu of Cash Distributions	282,930		2,319	680,270		6,116
Redeemed	(1,603,436	)	(13,047)	(3,809,581	)	(34,442	)
Net Increase (Decrease)—Admiral Shares	2,039,846		16,378	(367,595	)	(3,407	)
Institutional Shares
Issued	966,600		51,127	1,757,587		102,091
Issued in Lieu of Cash Distributions	139,242		7,374	338,704		19,682
Redeemed	(848,184	)	(44,442)	(2,467,738	)	(142,026	)
Net Increase (Decrease)—Institutional Shares	257,658		14,059	(371,447	)	(20,253	)

1In November 2018, the fund announced changes to the availability and minimum investment criteria of the Investor and Admiral share classes. As a result, all of the outstanding Investor Shares automatically converted to Admiral Shares beginning in April 2019, with the exception of those held by Vanguard funds and certain other institutional investors. Investor Shares–Redeemed and Admiral Shares–Issued include $2,012,199,000 from the conversion during the six months ended July 31, 2019.

22

Real Estate Index 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
	Jan. 31,				Proceeds		Realized								July 31,
	2019				from		Net		Change in				Capital Gain		2019
	Market		Purchases		Securities		Gain		Unrealized				Distributions		Market
	Value		at Cost		Sold1		(Loss	)	App. (Dep.	)	Income		Received		Value
	($000	)	($000	)	($000	)	($000	)	($000	)	($000	)	($000	)	($000	)
Brookfield Property REIT Inc.	137,387		1,249		149,263		(47,620	)	21,133		39,185		769		—
iStar Inc.	NA2		4,203		3,273		189		11,774		419		210		43,841
Omega Healthcare Investors Inc.	NA2		141,983		40,806		8,671		(38,858	)	10,527		27		378,476
Vanguard Market Liquidity Fund	801,441		NA3		NA3		(2	)	29		4,034		—		802,983
Vanguard Real Estate II Index Fund	6,719,464		102,332		—		—		468,434		102,332		—		7,290,230
Winthrop Realty Trust	2,061		—		—		—		—		—		—		2,061
Total	7,660,353		249,767		193,342		(38,762	)	462,512		156,497		1,006		8,517,591

1Does not include adjustments to related return of capital.

2Not applicable—at January 31, 2019, the issuer was not an affiliated company of the fund.

3Not applicable—purchases and sales are for temporary cash investment purposes.

I.    Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

23

Real Estate II Index Fund

Sector Diversification

As of July 31, 2019

Diversified Real Estate Activities	0.2	%
Diversified REITs	4.7
Health Care REITs	9.6
Hotel & Resort REITs	4.3
Industrial REITs	7.9
Office REITs	9.5
Real Estate Development	0.5
Real Estate Operating Companies	0.3
Real Estate Services	2.6
Residential REITs	14.5
Retail REITs	12.9
Specialized REITs	33.0

The table reflects the fund’s equity exposure, based on its investments in stocks and stock index futures. Any holdings in short-term reserves are excluded. 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.

24

Real Estate II Index Fund

Financial Statements (unaudited)

Statement of Net Assets

As of July 31, 2019

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	)
Equity Real Estate Investment
Trusts (REITs) (96.0%)1
Diversified REITs (4.6%)
	WP Carey Inc.	1,012,146	87,591
	Liberty Property Trust	901,702	47,159
	STORE Capital Corp.	1,231,527	42,131
	VEREIT Inc.	2,848,367	25,977
	PS Business Parks Inc.	125,019	21,878
	Colony Capital Inc.	2,840,035	16,046
	American Assets Trust Inc.	297,853	13,820
	Washington REIT	487,202	13,130
	Lexington Realty Trust	1,289,298	12,725
	Empire State Realty Trust Inc.	906,768	12,704
	Global Net Lease Inc.	511,441	9,983
	Alexander & Baldwin Inc.	417,530	9,816
	Essential Properties Realty Trust Inc.	444,300	9,384
	iStar Inc.	415,651	5,487
	Armada Hoffler Properties Inc.	307,263	5,202
	Gladstone Commercial Corp.	179,754	3,822
	One Liberty Properties Inc.	88,378	2,533
			339,388
Health Care REITs (9.6%)
	Welltower Inc.	2,354,705	195,723
	Ventas Inc.	2,170,821	146,074
	HCP Inc.	2,911,811	92,974
^	Omega Healthcare Investors Inc.	1,307,211	47,452
	Medical Properties Trust Inc.	2,678,760	46,878
	Healthcare Trust of America Inc. Class A	1,251,080	33,692
	Healthcare Realty Trust Inc.	763,859	24,428
	Sabra Health Care REIT Inc.	1,086,533	22,426
	National Health Investors Inc.	260,377	20,669
	Physicians Realty Trust	1,111,589	19,130
	CareTrust REIT Inc.	541,788	12,586
	Senior Housing Properties Trust	1,449,098	11,883
	LTC Properties Inc.	241,800	11,145
	Universal Health Realty Income Trust	79,608	7,337
	Community Healthcare Trust Inc.	109,151	4,485
	New Senior Investment Group Inc.	499,795	3,563
			700,445
Hotel & Resort REITs (4.3%)
	Host Hotels & Resorts Inc.	4,512,953	78,480
	Park Hotels & Resorts Inc.	1,228,420	32,443
	Hospitality Properties Trust	1,002,299	24,767
	Ryman Hospitality Properties Inc.	297,240	22,293
	Pebblebrook Hotel Trust	794,636	22,242
	Apple Hospitality REIT Inc.	1,294,898	20,343
	RLJ Lodging Trust	1,067,595	18,448
	Sunstone Hotel Investors Inc.	1,390,739	18,372
	MGM Growth Properties LLC Class A	551,352	16,463
	Xenia Hotels & Resorts Inc.	686,772	14,717
	DiamondRock Hospitality Co.	1,227,449	12,360
	Chesapeake Lodging Trust	370,263	10,171
	Summit Hotel Properties Inc.	638,554	7,094
	Chatham Lodging Trust	284,044	5,073
	Hersha Hospitality Trust Class A	227,458	3,553

25

Real Estate II Index Fund

			Market
			Value·
		Shares	($000	)
	CorePoint Lodging Inc.	253,759	2,977
	Ashford Hospitality Trust Inc.	583,361	1,581
	Braemar Hotels & Resorts Inc.	167,957	1,532
			312,909
Industrial REITs (7.8%)
	Prologis Inc.	3,841,742	309,683
	Duke Realty Corp.	2,189,444	72,974
	Americold Realty Trust	1,066,942	35,774
	First Industrial Realty Trust Inc.	771,543	29,465
	EastGroup Properties Inc.	222,323	26,785
	Rexford Industrial Realty Inc.	590,262	24,437
	STAG Industrial Inc.	685,439	20,371
	Terreno Realty Corp.	372,470	18,199
	Hannon Armstrong Sustainable Infrastructure Capital Inc.	377,912	10,374
	Industrial Logistics Properties Trust	396,493	8,477
	Monmouth Real Estate Investment Corp.	536,676	7,401
^	Innovative Industrial Properties Inc.	67,529	7,136
			571,076
Office REITs (9.5%)
	Boston Properties Inc.	941,372	125,156
	Alexandria Real Estate Equities Inc.	687,037	100,555
	Vornado Realty Trust	1,045,140	67,224
	Kilroy Realty Corp.	615,345	48,895
	SL Green Realty Corp.	510,030	41,353
	Douglas Emmett Inc.	985,521	40,229
	Hudson Pacific Properties Inc.	940,543	33,201
	Cousins Properties Inc.	885,649	31,157
	Highwoods Properties Inc.	631,199	28,612
	JBG SMITH Properties	709,794	27,774
	Equity Commonwealth	741,013	24,883
	Corporate Office Properties Trust	671,994	18,762
	Piedmont Office Realty Trust Inc. Class A	765,574	15,932
	Brandywine Realty Trust	1,071,738	15,808
	Paramount Group Inc.	1,137,155	15,727
	Columbia Property Trust Inc.	712,526	15,626
	Mack-Cali Realty Corp.	550,750	13,097
	Office Properties Income Trust	293,012	8,254
	Easterly Government Properties Inc.	370,925	6,999
	Franklin Street Properties Corp.	654,426	5,275
	NorthStar Realty Europe Corp.	243,418	4,138
	City Office REIT Inc.	240,332	2,975
			691,632
Residential REITs (14.5%)
	Equity Residential	2,254,533	177,860
	AvalonBay Communities Inc.	844,137	176,247
	Essex Property Trust Inc.	400,355	120,995
	Mid-America Apartment Communities Inc.	694,089	81,792
	UDR Inc.	1,679,672	77,366
	Invitation Homes Inc.	2,715,524	74,595
	Sun Communities Inc.	526,360	69,906
	Equity LifeStyle Properties Inc.	520,659	64,692
	Camden Property Trust	588,932	61,078
	Apartment Investment & Management Co.	899,567	44,565
	American Homes 4 Rent Class A	1,623,720	39,310
	American Campus Communities Inc.	835,135	39,043
	Independence Realty Trust Inc.	544,184	6,721
	NexPoint Residential Trust Inc.	115,127	4,969
	Investors Real Estate Trust	71,863	4,581
	Front Yard Residential Corp.	311,316	3,739
	Preferred Apartment Communities Inc. Class A	253,914	3,679
	UMH Properties Inc.	206,036	2,709
			1,053,847
Retail REITs (12.8%)
	Simon Property Group Inc.	1,883,013	305,425
	Realty Income Corp.	1,851,476	128,141
	Regency Centers Corp.	1,020,893	68,094
	Federal Realty Investment Trust	453,237	59,832
^	National Retail Properties Inc.	984,998	51,456
	Kimco Realty Corp.	2,568,220	49,336

26

Real Estate II Index Fund

			Market
			Value·
		Shares	($000	)
	Brixmor Property Group Inc.	1,819,758	34,539
	Spirit Realty Capital Inc.	524,612	23,146
	Macerich Co.	688,578	22,758
	Weingarten Realty Investors	742,722	20,729
	Retail Properties of America Inc.	1,301,492	15,826
	Agree Realty Corp.	228,870	15,300
	Taubman Centers Inc.	372,553	15,096
	Acadia Realty Trust	497,199	13,956
	Retail Opportunity Investments Corp.	694,946	12,606
	SITE Centers Corp.	880,062	12,541
	Urban Edge Properties	696,944	11,660
^	Tanger Factory Outlet Centers Inc.	572,383	9,089
^	Seritage Growth Properties Class A	206,460	8,624
	Kite Realty Group Trust	510,762	8,126
^	American Finance Trust Inc.	550,246	6,443
	Getty Realty Corp.	211,744	6,348
	RPT Realty	488,799	5,988
	Alexander’s Inc.	14,022	5,251
	Saul Centers Inc.	83,143	4,555
^	Washington Prime Group Inc.	1,136,186	4,124
	Urstadt Biddle Properties Inc. Class A	182,462	3,939
	Retail Value Inc.	89,813	3,381
	Whitestone REIT	217,528	2,773
^	Pennsylvania REIT	410,475	2,455
	Spirit MTA REIT	260,992	2,195
	Cedar Realty Trust Inc.	541,560	1,506
			935,238
Specialized REITs (32.9%)
	American Tower Corp.	2,688,541	568,949
	Crown Castle International Corp.	2,532,728	337,511
	Equinix Inc.	491,973	247,020
	Public Storage	957,151	232,358
*	SBA Communications Corp. Class A	685,225	168,161
	Digital Realty Trust Inc.	1,266,615	144,850
	Weyerhaeuser Co.	4,549,857	115,612
	Extra Space Storage Inc.	775,831	87,196
	VICI Properties Inc.	2,466,659	52,638
	Iron Mountain Inc.	1,745,335	51,330
	Gaming and Leisure Properties Inc.	1,242,740	46,864
	Lamar Advertising Co. Class A	519,044	42,001
	CubeSmart	1,140,612	38,724
	CyrusOne Inc.	659,804	37,873
	EPR Properties	453,122	33,726
	Life Storage Inc.	284,210	27,708
	CoreSite Realty Corp.	223,733	23,449
	Outfront Media Inc.	857,528	23,308
	Rayonier Inc.	789,225	22,919
	QTS Realty Trust Inc. Class A	335,406	15,523
	PotlatchDeltic Corp.	413,642	15,230
	GEO Group Inc.	735,874	13,106
	CoreCivic Inc.	723,215	12,273
	Four Corners Property Trust Inc.	416,458	11,219
	National Storage Affiliates Trust	345,790	10,474
	Uniti Group Inc.	1,090,958	9,186
	CorEnergy Infrastructure Trust Inc.	77,792	3,148
	CatchMark Timber Trust Inc. Class A	299,868	3,047
	Jernigan Capital Inc.	124,163	2,463
			2,397,866
Total Equity Real Estate Investment Trusts (REITs) (Cost $6,290,312)			7,002,401
Real Estate Management & Development (3.6%)1
Diversified Real Estate Activities (0.2%)
	RMR Group Inc. Class A	91,655	4,513
*	St. Joe Co.	220,650	4,245
*	Tejon Ranch Co.	134,504	2,492
*	Five Point Holdings LLC Class A	303,125	2,368
			13,618
Real Estate Development (0.5%)
*	Howard Hughes Corp.	248,962	33,610
*	Forestar Group Inc.	63,537	1,313
			34,923
Real Estate Operating Companies (0.3%)
	Kennedy-Wilson Holdings Inc.	785,684	16,908
*	FRP Holdings Inc.	42,867	2,125
			19,033
Real Estate Services (2.6%)
*	CBRE Group Inc. Class A	1,973,920	104,637
	Jones Lang LaSalle Inc.	313,979	45,744
*	Cushman & Wakefield plc	594,200	11,789
^,*	Redfin Corp.	441,275	7,961
	Newmark Group Inc. Class A	804,589	7,933
*	Marcus & Millichap Inc.	142,225	4,722
^	Realogy Holdings Corp.	692,529	3,608

27

Real Estate II Index Fund

			Market
			Value·
		Shares	($000	)
	RE/MAX Holdings Inc. Class A	108,549	3,157
^,*	eXp World Holdings Inc.	105,319	1,113
*	Altisource Portfolio Solutions SA	42,720	897
			191,561
Total Real Estate Management & Development (Cost $257,835)			259,135
Temporary Cash Investment (1.4%)1
Money Market Fund (1.4%)
2,3	Vanguard Market Liquidity Fund, 2.386% (Cost $104,075)	1,040,655	104,076
Total Investments (101.0%) (Cost $6,652,222)			7,365,612
			Amount
			($000	)
Other Assets and Liabilities (-1.0%)
Other Assets
Investment in Vanguard			343
Receivables for Accrued Income			3,719
Total Other Assets			4,062
Liabilities
Payables for Investment Securities Purchased			(162	)
Collateral for Securities on Loan			(78,719	)
Payables to Vanguard			(318	)
Unrealized Depreciation—OTC Swap Contracts			(208	)
Other Liabilities			(37	)
Total Liabilities			(79,444	)
Net Assets (100%)
Applicable to 339,138,157 outstanding $.001 par value shares of beneficial interest (unlimited authorization)			7,290,230
Net Asset Value Per Share			$21.50

At July 31, 2019, net assets consisted of:

	Amount
	($000	)
Paid-in Capital	6,641,623
Total Distributable Earnings (Loss)	648,607
Net Assets	7,290,230

·See Note A in Notes to Financial Statements.

^Includes partial security positions on loan to broker-dealers.

The total value of securities on loan is $74,860,000.

*Non-income-producing security.

1The fund invests a portion of its assets in investment securities through the use of swap contracts. After giving effect to swap investments, the fund’s effective investment securities and temporary cash investment positions represent 100.0% and 1.0%, respectively, of net assets.

2Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

3Includes $78,719,000 of collateral received for securities on loan.

REIT—Real Estate Investment Trust.

OTC—Over-the-Counter.

28

Real Estate II Index Fund

Derivative Financial Instruments Outstanding as of Period End
Over-the-Counter Total Return Swaps
					Floating
					Interest
					Rate		Value and		Value and
			Notional		Received		Unrealized		Unrealized
	Termination		Amount		(Paid)	1	Appreciation		(Depreciation)
Reference Entity	Date	Counterparty	($000	)	(%)		($000	)	($000)
VEREIT Inc.	2/4/20	GSI	27,999		(2.314)		—		(208)

GSI—Goldman Sachs International.

1Payment received/paid monthly.

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

29

Real Estate II Index Fund

Statement of Operations

	Six Months Ended
	July 31, 2019
	($000	)
Investment Income
Income
Dividends	102,963
Interest1	202
Securities Lending—Net	165
Total Income	103,330
Expenses
The Vanguard Group—Note B
Investment Advisory Services	881
Management and Administrative	1,805
Marketing and Distribution	51
Custodian Fees	21
Shareholders’ Reports	51
Trustees’ Fees and Expenses	1
Total Expenses	2,810
Expenses Paid Indirectly	(12	)
Net Expenses	2,798
Net Investment Income	100,532
Realized Net Gain (Loss)
Capital Gain Distributions Received	12,522
Investment Securities Sold1	(13,107	)
Futures Contracts	40
Swap Contracts	3,903
Realized Net Gain (Loss)	3,358
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	467,084
Swap Contracts	(208	)
Change in Unrealized Appreciation (Depreciation)	466,876
Net Increase (Decrease) in Net Assets Resulting from Operations	570,766

1Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $202,000, $1,000, and $1,000, respectively. Purchases and sales are for temporary cash investment purposes.

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

30

Real Estate II Index Fund

Statement of Changes in Net Assets

	Six Months Ended		Year Ended
	July 31,		January 31,
	2019		2019
	($000	)	($000	)
Increase (Decrease) in Net Assets
Operations
Net Investment Income	100,532		199,381
Realized Net Gain (Loss)	3,358		(76,397	)
Change in Unrealized Appreciation (Depreciation)	466,876		470,068
Net Increase (Decrease) in Net Assets Resulting from Operations	570,766		593,052
Distributions
Net Investment Income	(102,332)		(203,421	)
Realized Capital Gain	—		—
Return of Capital	—		(75,255	)
Total Distributions	(102,332)		(278,676	)
Capital Share Transactions
Issued	—		—
Issued in Lieu of Cash Distributions	102,332		278,676
Redeemed	—		—
Net Increase (Decrease) from Capital Share Transactions	102,332		278,676
Total Increase (Decrease)	570,766		593,052
Net Assets
Beginning of Period	6,719,464		6,126,412
End of Period	7,290,230		6,719,464

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

31

Real Estate II Index Fund

Financial Highlights

	Six Months		Year		Sept. 26,
	Ended		Ended		20171 to
	July 31,		Jan. 31,		Jan. 31,
For a Share Outstanding Throughout Each Period	2019		2019		2018
Net Asset Value, Beginning of Period	$20.10		$19.17		$20.00
Investment Operations
Net Investment Income2	.299		.611		.268
Net Realized and Unrealized Gain (Loss) on Investments	1.406		1.176		(.834	)
Total from Investment Operations	1.705		1.787		(.566	)
Distributions
Dividends from Net Investment Income	(.305	)	(.626	)	(.225	)
Distributions from Realized Capital Gains	—		—		(.030	)
Return of Capital	—		(.231	)	(.009	)
Total Distributions	(.305	)	(.857	)	(.264	)
Net Asset Value, End of Period	$21.50		$20.10		$19.17
Total Return	8.52%		9.68%		-2.89%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$7,290		$6,719		$6,126
Ratio of Total Expenses to Average Net Assets	0.08%		0.08%		0.08%3
Ratio of Net Investment Income to Average Net Assets	2.86%		3.22%		3.84%3
Portfolio Turnover Rate	4%		23%		1%

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

1Inception.

2Calculated based on average shares outstanding.

3Annualized.

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

32

Real Estate II Index Fund

Notes to Financial Statements

Vanguard Real Estate II Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund is a wholly owned subsidiary of Vanguard Real Estate Index Fund (“Real Estate Index Fund”), and at July 31, 2019, the Real Estate Index Fund was the record and beneficial owner of 100% of the fund’s net assets. As part of the Real Estate Index Fund’s principal investment strategy, it attempts to replicate the benchmark index by investing all, or substantially all, of its assets—either directly or indirectly through the fund—in the stocks that make up the index.

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

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

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

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

During the six months ended July 31, 2019, the fund’s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period. The fund had no open futures contracts at July 31, 2019.

3. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks in the fund’s target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease

33

Real Estate II Index Fund

in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.

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

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

During the six months ended July 31, 2019, the fund’s average amounts of investments in total return swaps represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.

4. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (January 31, 2018–2019), and for the period ended July 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.

5. Distributions: Distributions to shareholders are recorded on the ex-dividend date. The portion of distributions that exceeds a fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

6. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the

34

Real Estate II Index Fund

value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Net Assets for the return of the collateral, during the period the securities are on loan. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

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

The fund had no borrowings outstanding at July 31, 2019, or at any time during the period then ended.

8. Other: Distributions received from investment securities are recorded on the ex-dividend date. Each investment security reports annually the tax character of its distributions. Dividend income, capital gain distributions received, and unrealized appreciation (depreciation) reflect the amounts of taxable income, capital gain, and return of capital reported by the investment securities, and management’s estimates of such amounts for investment security distributions for which actual information has not been reported. 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.

B.   In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.

35

Real Estate II Index Fund

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At July 31, 2019, the fund had contributed to Vanguard capital in the amount of $343,000, representing 0.00% of the fund’s net assets and 0.14% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.

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

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

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

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

The following table summarizes the market value of the fund’s investments and derivatives as of July 31, 2019, based on the inputs used to value them:

	Level 1		Level 2		Level 3
Investments	($000	)	($000	)	($000	)
Common Stocks	7,261,536		—		—
Temporary Cash Investments	104,076		—		—
Swap Contracts—Liabilities	—		(208	)	—
Total	7,365,612		(208	)	—

D.   As of July 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount
	($000	)
Tax Cost	6,652,222
Gross Unrealized Appreciation	1,068,768
Gross Unrealized Depreciation	(355,586	)
Net Unrealized Appreciation (Depreciation)	713,182

The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2019, the fund had available capital losses totaling $77,916,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2020; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

36

Real Estate II Index Fund

E.   During the six months ended July 31, 2019, the fund purchased $258,398,000 of investment securities and sold $131,783,000 of investment securities, other than temporary cash investments.

F.   Capital shares issued and redeemed were:

	Six Months Ended		Year Ended
	July 31, 2019		January 31, 2019
	Shares		Shares
	(000	)	(000	)
Issued	—		—
Issued in Lieu of Cash Distributions	4,849		14,725
Redeemed	—		—
Net Increase (Decrease) in Shares Outstanding	4,849		14,725

G.   Management has determined that no events or transactions occurred subsequent to July 31, 2019, that would require recognition or disclosure in these financial statements.

37

Trustees Approve Advisory Arrangements

The board of trustees of Vanguard Real Estate Index Fund and the board of trustees of Vanguard Real Estate II Index Fund have renewed their respective fund’s investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), through its Equity Index Group. Each board determined that continuing the respective fund’s internalized management structure was in the best interests of the fund and its shareholders.

Each 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, each board received monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.

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

Nature, extent, and quality of services

The board of the Real Estate Index Fund reviewed the quality of that fund’s investment management services over both the short and long term, while the board of the Real Estate II Index Fund reviewed the quality of that fund’s investment management services since its inception in 2017. Each board took into account the organizational depth and stability of the advisor and considered that Vanguard has been managing investments for more than four decades. The Equity Index Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth.

Each board concluded that Vanguard’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangement with its respective fund.

Investment performance

The board of the Real Estate Index Fund considered the short- and long-term performance of that fund, including any periods of outperformance or underperformance compared with its target index and peer group, while the board of the Real Estate II Index Fund considered the performance of that fund compared with its target index and peer group since its inception in 2017. Each board concluded that the performance of its respective fund was such that its advisory arrangement should continue.

38

Cost

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

Neither board conducts a profitability analysis of Vanguard because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.

The benefit of economies of scale

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

Each board will consider whether to renew its respective advisory arrangement again after a one-year period.

39

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P.O. Box 2600

Valley Forge, PA 19482-2600

Connect with Vanguard®> vanguard.com

Fund Information > 800-662-7447

Direct Investor Account Services > 800-662-2739

Institutional Investor Services > 800-523-1036

Text Telephone for People

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, sec.gov. In addition, you may obtain a free report on how your fund voted the proxies for securities it owned during the 12 months ended June 30. To get the report, visit either vanguard.com/proxyreporting or sec.gov.

You can review 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.

© 2019 The Vanguard Group, Inc.

All rights reserved.

U.S. Patent Nos. 6,879,964; 7,337,138;

7,720,749; 7,925,573; 8,090,646; 8,417,623; and 8,626,636.

Vanguard Marketing Corporation, Distributor.

Q1232 092019

Item 2: Code of Ethics.

Not applicable.

Item 3: Audit Committee Financial Expert.

Not applicable.

Item 4: Principal Accountant Fees and Services.

(a)        Audit Fees.

Not applicable.

Item 5: Audit Committee of Listed Registrants.

Not applicable.

Item 6: Investments.

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

					Face		Market
				Maturity	Amount		Value
		Coupon		Date	($000	)	($000	)
U.S. Government and Agency Obligations (7.4%)
U.S. Government Securities (7.2%)
	United States Treasury Inflation Indexed Bonds	1.125%		1/15/21	130,000		152,736
	United States Treasury Inflation Indexed Bonds	0.125%		4/15/21	100,000		106,753
1,2	United States Treasury Inflation Indexed Bonds	0.125%		1/15/22	425,000		476,518
	United States Treasury Inflation Indexed Bonds	0.125%		4/15/22	1,500,000		1,563,497
	United States Treasury Inflation Indexed Bonds	0.125%		7/15/22	550,000		609,049
	United States Treasury Note/Bond	0.875%		9/15/19	50,000		49,922
2,3	United States Treasury Note/Bond	1.875%		7/31/22	1,253,000		1,254,178
2	United States Treasury Note/Bond	1.625%		8/31/22	124,000		123,205
	United States Treasury Note/Bond	2.500%		3/31/23	8,440		8,638
3	United States Treasury Note/Bond	2.875%		8/15/28	15,300		16,407
							4,360,903
Conventional Mortgage-Backed Securities (0.1%)
4,5	UMBS TBA	4.000%	7/1/49–8/1/49		39,665		41,072
Nonconventional Mortgage-Backed Securities (0.1%)
4,6,7	Fannie Mae Pool, 12M USD LIBOR + 1.702%	4.827%		2/1/37	472		502
4,6,7	Fannie Mae Pool, 12M USD LIBOR + 1.750%	4.500%		9/1/32	190		200
4,6,7	Fannie Mae Pool, 12M USD LIBOR + 1.760%	4.703%		8/1/37	443		452
4,6,7	Fannie Mae Pool, 12M USD LIBOR + 1.785%	4.535%		8/1/33	1,669		1,734
4,6,7	Fannie Mae Pool, 12M USD LIBOR + 1.800%	4.675%		7/1/33	1,636		1,689
4,6,7	Fannie Mae Pool, 12M USD LIBOR + 1.960%	4.796%		5/1/33	267		285
4,6,7	Fannie Mae Pool, 1YR CMT + 2.000%	4.545%		12/1/32	214		220
4,6,7	Fannie Mae Pool, 1YR CMT + 2.125%	4.594%		6/1/33	946		987
4,6,7	Fannie Mae Pool, 1YR CMT + 2.185%	4.435%		7/1/32	137		145
4,6,7	Fannie Mae Pool, 1YR CMT + 2.210%	4.731%		5/1/33	1,253		1,328
4,6,7,8	Fannie Mae REMICS, 6.200% - 1M USD LIBOR	3.934%		10/25/47	64,568		11,401
4,6,7	Freddie Mac Non Gold Pool, 12M USD LIBOR + 1.750%	4.500%		8/1/37	1,360		1,420
4,6,7	Freddie Mac Non Gold Pool, 12M USD LIBOR + 1.893%	4.643%		9/1/32	711		728
4,6,7	Freddie Mac Non Gold Pool, 12M USD LIBOR + 1.961%	4.711%		8/1/33	419		443
4,6,7	Freddie Mac Non Gold Pool, 12M USD LIBOR + 1.961%	4.815%		10/1/32	248		262
4,6,7	Freddie Mac Non Gold Pool, 12M USD LIBOR + 1.961%	5.000%		1/1/33	176		190
4,6,7	Freddie Mac Non Gold Pool, 12M USD LIBOR + 1.961%	5.086%		2/1/33	148		153
4,6,7	Freddie Mac Non Gold Pool, 1YR CMT + 2.250%	4.500%		8/1/32	529		545
4,6,7	Freddie Mac Non Gold Pool, 1YR CMT + 2.250%	4.549%		8/1/32	466		496
4,6,7	Freddie Mac Non Gold Pool, 1YR CMT + 2.254%	4.629%		9/1/32	50		54
4,6,7,8	Freddie Mac REMICS, 6.150% - 1M USD LIBOR	3.825%	1/15/42–1/15/45		48,048		7,687
4,6,7,8	Freddie Mac REMICS, 6.200% - 1M USD LIBOR	3.875%		12/15/47	24,702		4,525
4,9	Ginnie Mae REMICS	4.500%		1/20/48	748		133
4,7,8	Ginnie Mae REMICS, 5.650% - 1M USD LIBOR	3.378%		8/20/45	40,326		6,555
4,7,8	Ginnie Mae REMICS, 6.100% - 1M USD LIBOR	3.828%		9/20/46	30,476		6,294
4,7,8	Ginnie Mae REMICS, 6.200% - 1M USD LIBOR	3.929%	10/20/47–12/20/47		76,911		13,139
							61,567
Total U.S. Government and Agency Obligations (Cost $4,443,143)							4,463,542
Asset-Backed/Commercial Mortgage-Backed Securities (24.5%)
4	Ally Auto Receivables Trust 2017-5	2.220%		10/17/22	17,710		17,689
4	Ally Auto Receivables Trust 2018-1	2.350%		6/15/22	82,569		82,673
4	Ally Auto Receivables Trust 2018-1	2.530%		2/15/23	23,100		23,223
4	Ally Auto Receivables Trust 2019-1	3.020%		4/15/24	6,300		6,453
4	Ally Master Owner Trust Series 2017-3	2.040%		6/15/22	34,870		34,769
4	Ally Master Owner Trust Series 2018-2	3.290%		5/15/23	29,860		30,384
4	Ally Master Owner Trust Series 2018-2	3.300%		7/17/23	36,090		36,789

1

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	American Express Credit Account Master Trust 2019-1	2.870%	10/15/24	28,580		29,174
4,10	American Homes 4 Rent 2014-SFR2	3.786%	10/17/36	12,388		12,992
4,10	American Homes 4 Rent 2014-SFR2	4.290%	10/17/36	3,360		3,547
4,10	American Homes 4 Rent 2014-SFR3	3.678%	12/17/36	16,736		17,412
4,10	American Homes 4 Rent 2015-SFR1	3.467%	4/17/52	14,881		15,354
4,10	American Homes 4 Rent 2015-SFR2	3.732%	10/17/52	6,450		6,734
4,10	American Homes 4 Rent 2015-SFR2	4.295%	10/17/52	2,830		3,017
4,10	American Tower Trust #1	3.652%	3/23/28	13,190		13,764
4,10	Americold 2010 LLC Trust Series 2010-ARTA	4.954%	1/14/29	15,984		16,592
4,10	Americold 2010 LLC Trust Series 2010-ARTA	6.811%	1/14/29	11,185		11,895
4	AmeriCredit Automobile Receivables Trust 2016-1	3.590%	2/8/22	6,939		7,008
4	AmeriCredit Automobile Receivables Trust 2016-2	3.650%	5/9/22	9,390		9,503
4	AmeriCredit Automobile Receivables Trust 2016-3	2.710%	9/8/22	10,170		10,213
4	AmeriCredit Automobile Receivables Trust 2018-2	4.010%	7/18/24	19,450		20,126
4	AmeriCredit Automobile Receivables Trust 2019-1	3.620%	3/18/25	21,420		21,972
4,10	AOA Mortgage Trust 2015-1177	2.957%	12/13/29	13,390		13,500
4,10	Applebee’s Funding LLC / IHOP Funding LLC	4.194%	6/7/49	5,040		5,104
4,10	ARL Second LLC 2014-1A	2.920%	6/15/44	11,427		11,451
4,10	Aventura Mall Trust 2013-AVM	3.743%	12/5/32	15,105		15,427
4,10	Aventura Mall Trust 2018-AVM	4.112%	7/5/40	1,680		1,854
4,10	Avis Budget Rental Car Funding AESOP LLC 2015-1A	2.500%	7/20/21	17,400		17,401
4,10	Avis Budget Rental Car Funding AESOP LLC 2015-2A	2.630%	12/20/21	43,123		43,192
4,10	Avis Budget Rental Car Funding AESOP LLC 2016-1A	2.990%	6/20/22	3,341		3,369
4,10	Avis Budget Rental Car Funding AESOP LLC 2017-1A	3.070%	9/20/23	7,640		7,756
4,10	Avis Budget Rental Car Funding AESOP LLC 2017-2A	2.970%	3/20/24	9,650		9,783
4,10	Avis Budget Rental Car Funding AESOP LLC 2018-1A	3.700%	9/20/24	5,330		5,557
4,10	Avis Budget Rental Car Funding AESOP LLC 2018-1A	4.730%	9/20/24	2,540		2,661
4,10	Avis Budget Rental Car Funding AESOP LLC 2018-2A	4.000%	3/20/25	18,650		19,714
4,10	Avis Budget Rental Car Funding AESOP LLC 2019-1A	3.450%	3/20/23	15,310		15,662
4,10	BAMLL Commercial Mortgage Securities Trust 2012-PARK	2.959%	12/10/30	4,900		5,026
4	Banc of America Commercial Mortgage Trust 2015-UBS7	3.429%	9/15/48	8,360		8,712
4	Banc of America Commercial Mortgage Trust 2015-UBS7	3.705%	9/15/48	9,460		10,088
4	Banc of America Commercial Mortgage Trust 2015-UBS7	4.361%	9/15/48	1,600		1,686
4	Banc of America Commercial Mortgage Trust 2017-BNK3	3.574%	2/15/50	4,760		5,064
4	Banc of America Funding 2006-H Trust	4.384%	9/20/46	8,443		7,724
4	BANK 2017 - BNK4	3.625%	5/15/50	8,435		9,012
4	BANK 2017 - BNK5	3.390%	6/15/60	8,150		8,584
4	BANK 2017 - BNK6	3.254%	7/15/60	13,450		14,092
4	BANK 2017 - BNK6	3.518%	7/15/60	13,190		14,006
4	BANK 2017 - BNK6	3.741%	7/15/60	3,080		3,222
4	BANK 2017 - BNK7	3.435%	9/15/60	16,580		17,509
4	BANK 2017 - BNK8	3.488%	11/15/50	33,600		35,632
4	BANK 2017 - BNK9	3.538%	11/15/54	18,130		19,272
4	BANK 2018 - BN10	3.641%	2/15/61	11,860		12,627
4	BANK 2018 - BN10	3.688%	2/15/61	31,470		33,822
4	BANK 2018 - BN12	4.255%	5/15/61	19,620		21,962
4	BANK 2018 - BN13	4.217%	8/15/61	5,240		5,872
4	BANK 2018 - BN14	4.185%	9/15/60	6,680		7,342
4	BANK 2018 - BN14	4.231%	9/15/60	22,000		24,641
4	BANK 2018 - BN15	4.407%	11/15/61	27,963		31,832
4	BANK 2019 - BN17	3.623%	4/15/52	7,533		8,063
4	BANK 2019 - BN17	3.714%	4/15/52	15,650		16,906
4	BANK 2019 - BN18	3.584%	5/15/62	21,080		22,625
4	BANK 2019 - BN19	3.183%	8/15/61	13,050		13,507
4	Bank of America Mortgage Trust 2002-J	4.923%	9/25/32	16		16
4	Bear Stearns ARM Trust 2006-4	4.100%	10/25/36	12,819		11,891
4	Bear Stearns ARM Trust 2007-3	4.384%	5/25/47	9,304		8,743
4	BENCHMARK 2018-B1 Mortgage Trust	3.602%	1/15/51	3,740		3,961
4	BENCHMARK 2018-B1 Mortgage Trust	3.666%	1/15/51	17,710		18,967

2

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	BENCHMARK 2018-B1 Mortgage Trust	3.878%	1/15/51	5,990		6,411
4	BENCHMARK 2018-B1 Mortgage Trust	4.059%	1/15/51	2,700		2,883
4	BENCHMARK 2018-B1 Mortgage Trust	4.118%	1/15/51	4,200		4,444
4	BENCHMARK 2018-B3 Mortgage Trust	4.025%	4/10/51	18,190		20,029
4	BENCHMARK 2018-B5 Mortgage Trust	4.208%	7/15/51	9,310		10,391
4	BENCHMARK 2018-B6 Mortgage Trust	4.170%	10/10/51	9,886		10,833
4	BENCHMARK 2018-B6 Mortgage Trust	4.261%	10/10/51	22,170		24,936
4	BENCHMARK 2018-B8 Mortgage Trust	4.232%	1/15/52	27,172		30,474
4	BENCHMARK 2019-B10 Mortgage Trust	3.615%	3/15/62	8,042		8,594
4	BMW Vehicle Lease Trust 2017-2	2.070%	10/20/20	8,554		8,548
4	BMW Vehicle Owner Trust 2018-A	2.510%	6/25/24	15,840		15,938
4,7	Brazos Higher Education Authority Inc. Series 2005-3, 3M USD LIBOR + 0.200%	2.549%	6/25/26	6,039		6,016
4,7	Brazos Higher Education Authority Inc. Series 2011-1, 3M USD LIBOR + 0.800%	3.321%	2/25/30	12,555		12,568
4,10	CAL Funding II Ltd. Series 2012-1A	3.470%	10/25/27	3,023		3,033
4,10	CAL Funding II Ltd. Series 2013-1A	3.350%	3/27/28	5,903		5,895
4,10	CAL Funding II Ltd. Series 2018-2A	4.340%	9/25/43	11,128		11,293
4,10	California Republic Auto Receivables Trust 2015-4	2.580%	6/15/21	3,718		3,719
4	California Republic Auto Receivables Trust 2016-2	1.830%	12/15/21	3,990		3,978
4	California Republic Auto Receivables Trust 2016-2	2.520%	5/16/22	6,520		6,524
4	California Republic Auto Receivables Trust 2016-2	3.510%	3/15/23	3,180		3,189
4,10	Canadian Pacer Auto Receivables Trust A Series 2017	2.050%	3/19/21	5,077		5,069
4,10	Canadian Pacer Auto Receivables Trust A Series 2017	2.286%	1/19/22	5,710		5,689
4,10	Canadian Pacer Auto Receivables Trust A Series 2018	3.220%	9/19/22	7,330		7,407
4,10	Canadian Pacer Auto Receivables Trust A Series 2019	2.960%	6/19/24	4,170		4,257
4,10	Canadian Pacer Auto Receiveable Trust A Series 2018	3.270%	12/19/22	4,680		4,728
4,10	Canadian Pacer Auto Receiveable Trust A Series 2018	3.440%	8/21/23	2,080		2,130
4	Capital Auto Receivables Asset Trust 2015-3	2.900%	12/21/20	3,492		3,493
4	Capital Auto Receivables Asset Trust 2016-2	3.160%	11/20/23	1,630		1,635
4	Capital Auto Receivables Asset Trust 2016-3	2.350%	9/20/21	6,110		6,093
4	Capital Auto Receivables Asset Trust 2016-3	2.650%	1/20/24	3,360		3,363
4,10	Capital Auto Receivables Asset Trust 2017-1	2.020%	8/20/21	8,138		8,125
4	Capital One Auto Receivables Trust 2019-1	2.510%	11/15/23	38,950		39,323
4	Capital One Auto Receivables Trust 2019-1	2.560%	10/15/24	13,130		13,318
4	Capital One Multi-Asset Execution Trust 2017-A4	1.990%	7/17/23	51,253		51,137
4	Capital One Multi-Asset Execution Trust 2019-A1	2.840%	12/15/24	90,670		92,350
4,10	CARDS II Trust 2018-2A	3.047%	4/17/23	17,940		18,006
4	CarMax Auto Owner Trust 2015-3	2.280%	4/15/21	3,875		3,872
4	CarMax Auto Owner Trust 2015-3	2.680%	6/15/21	5,560		5,564
4	CarMax Auto Owner Trust 2016-2	2.160%	12/15/21	4,850		4,837
4	CarMax Auto Owner Trust 2016-2	3.250%	11/15/22	5,800		5,812
4	CarMax Auto Owner Trust 2016-3	2.200%	6/15/22	5,740		5,722
4	CarMax Auto Owner Trust 2016-3	2.940%	1/17/23	4,050		4,051
4	CarMax Auto Owner Trust 2017-4	2.330%	5/15/23	6,860		6,890
4	CarMax Auto Owner Trust 2017-4	2.460%	8/15/23	3,240		3,248
4	CarMax Auto Owner Trust 2017-4	2.700%	10/16/23	3,240		3,236
4	CarMax Auto Owner Trust 2018-1	2.480%	11/15/22	76,110		76,357
4	CarMax Auto Owner Trust 2018-1	2.640%	6/15/23	12,020		12,166
4	CarMax Auto Owner Trust 2018-1	2.830%	9/15/23	19,890		20,140
4	CarMax Auto Owner Trust 2018-1	2.950%	11/15/23	6,170		6,192
4	CarMax Auto Owner Trust 2018-2	3.370%	10/16/23	4,755		4,888
4	CarMax Auto Owner Trust 2018-2	3.570%	12/15/23	6,860		7,046
4	CarMax Auto Owner Trust 2018-2	3.990%	4/15/25	5,300		5,434
4	CarMax Auto Owner Trust 2018-3	3.130%	6/15/23	26,590		26,991
4	CarMax Auto Owner Trust 2018-3	3.270%	3/15/24	13,310		13,745
4	CarMax Auto Owner Trust 2018-4	3.360%	9/15/23	18,390		18,814
4	CarMax Auto Owner Trust 2018-4	3.480%	2/15/24	6,780		7,056
4	CarMax Auto Owner Trust 2018-4	3.670%	5/15/24	5,940		6,188
4	CarMax Auto Owner Trust 2018-4	3.850%	7/15/24	4,030		4,196
4	CarMax Auto Owner Trust 2018-4	4.150%	4/15/25	2,730		2,842
§,4	CarMax Auto Owner Trust 2019-3	2.180%	8/15/24	41,500		41,495
§,4	CarMax Auto Owner Trust 2019-3	2.300%	4/15/25	7,570		7,567
§,4	CarMax Auto Owner Trust 2019-3	2.500%	4/15/25	9,610		9,607

3

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	CD 2016-CD1 Commercial Mortgage Trust	2.724%	8/10/49	3,650		3,684
4	CD 2016-CD1 Commercial Mortgage Trust	3.631%	8/10/49	6,299		6,400
4	CD 2017-CD3 Commercial Mortgage Trust	3.631%	2/10/50	29,440		31,484
4	CD 2017-CD4 Commercial Mortgage Trust	3.514%	5/10/50	12,810		13,595
4	CD 2017-CD5 Commercial Mortgage Trust	3.431%	8/15/50	17,147		18,091
4	CD 2017-CD6 Commercial Mortgage Trust	3.456%	11/13/50	6,715		7,094
4	CenterPoint Energy Transition Bond Co. IV LLC 2012-1	2.161%	10/15/21	7,355		7,352
4,10	CFCRE Commercial Mortgage Trust 2011-C2	5.748%	12/15/47	14,930		15,857
4	CFCRE Commercial Mortgage Trust 2016-C4	3.283%	5/10/58	25,764		26,741
4,10	Chesapeake Funding II LLC 2018-1	3.040%	4/15/30	23,111		23,300
4,10	Chesapeake Funding II LLC 2019-1	2.940%	4/15/31	38,730		39,162
4	CHL Mortgage Pass-Through Trust 2006-HYB1	4.042%	3/20/36	6,179		5,632
4	CHL Mortgage Pass-Through Trust 2007-HYB2	3.938%	2/25/47	7,230		6,228
4,10	Chrysler Capital Auto Receivables Trust 2015-BA	3.260%	4/15/21	5,594		5,596
4,10	Chrysler Capital Auto Receivables Trust 2015-BA	4.170%	1/16/23	15,545		15,611
4,10	Chrysler Capital Auto Receivables Trust 2016-AA	2.880%	6/15/22	3,624		3,625
4,10	Chrysler Capital Auto Receivables Trust 2016-AA	4.220%	2/15/23	26,030		26,283
4,10	Chrysler Capital Auto Receivables Trust 2016-BA	1.640%	7/15/21	1,459		1,458
4,10	Chrysler Capital Auto Receivables Trust 2016-BA	1.870%	2/15/22	5,960		5,940
4	Citibank Credit Card Issuance Trust 2018-A1	2.490%	1/20/23	89,125		89,619
4,10	Citigroup Commercial Mortgage Trust 2012-GC8	3.683%	9/10/45	2,100		2,163
4	Citigroup Commercial Mortgage Trust 2013-GC11	3.093%	4/10/46	6,350		6,522
4	Citigroup Commercial Mortgage Trust 2013-GC15	3.942%	9/10/46	6,109		6,311
4	Citigroup Commercial Mortgage Trust 2013-GC15	4.371%	9/10/46	3,786		4,077
4	Citigroup Commercial Mortgage Trust 2014-GC19	4.023%	3/10/47	19,843		21,188
4	Citigroup Commercial Mortgage Trust 2014-GC21	3.575%	5/10/47	3,479		3,655
4	Citigroup Commercial Mortgage Trust 2014-GC21	3.855%	5/10/47	40,226		42,761
4	Citigroup Commercial Mortgage Trust 2014-GC23	3.622%	7/10/47	25,685		27,131
4	Citigroup Commercial Mortgage Trust 2014-GC23	3.863%	7/10/47	12,426		13,093
4	Citigroup Commercial Mortgage Trust 2014-GC23	4.175%	7/10/47	5,394		5,571
4	Citigroup Commercial Mortgage Trust 2014-GC23	4.441%	7/10/47	6,380		6,717
4	Citigroup Commercial Mortgage Trust 2014-GC25	3.372%	10/10/47	18,100		18,872
4	Citigroup Commercial Mortgage Trust 2014-GC25	3.635%	10/10/47	40,950		43,308
4	Citigroup Commercial Mortgage Trust 2014-GC25	4.345%	10/10/47	6,146		6,511
4	Citigroup Commercial Mortgage Trust 2014-GC25	4.527%	10/10/47	1,035		1,099
4	Citigroup Commercial Mortgage Trust 2015-GC27	3.137%	2/10/48	38,271		39,589
4	Citigroup Commercial Mortgage Trust 2015-GC31	3.762%	6/10/48	52,677		56,201
4	Citigroup Commercial Mortgage Trust 2015-GC33	3.778%	9/10/58	46,591		49,878
4	Citigroup Commercial Mortgage Trust 2015-GC33	4.569%	9/10/58	4,000		4,212
4	Citigroup Commercial Mortgage Trust 2016-C1	3.209%	5/10/49	47,360		49,244
4	Citigroup Commercial Mortgage Trust 2016-P4	2.902%	7/10/49	4,426		4,520
4	Citigroup Commercial Mortgage Trust 2017-C4	3.471%	10/12/50	19,500		20,652
4	Citigroup Commercial Mortgage Trust 2017-P8	3.465%	9/15/50	41,283		43,741
4	Citigroup Commercial Mortgage Trust 2017-P8	4.192%	9/15/50	9,500		10,096
4	Citigroup Commercial Mortgage Trust 2017-P8	4.270%	9/15/50	9,500		9,786
4	Citigroup Commercial Mortgage Trust 2018-C5	4.228%	6/10/51	8,750		9,776
4	Citigroup Commercial Mortgage Trust 2018-C6	4.343%	11/10/51	10,960		12,188
4	Citigroup Commercial Mortgage Trust 2018-C6	4.412%	11/10/51	28,510		32,380
4	Citigroup Mortgage Loan Trust 2007-AR8	4.514%	7/25/37	530		513
4,10	CLI Funding V LLC 2013-1A	2.830%	3/18/28	8,751		8,697
4	COMM 2012-CCRE2 Mortgage Trust	3.147%	8/15/45	2,925		2,992
4	COMM 2012-CCRE2 Mortgage Trust	3.791%	8/15/45	4,100		4,226
4	COMM 2012-CCRE3 Mortgage Trust	2.822%	10/15/45	22,898		23,194
4,10	COMM 2012-CCRE3 Mortgage Trust	3.416%	10/15/45	12,316		12,576
4	COMM 2012-CCRE4 Mortgage Trust	2.853%	10/15/45	10,971		11,126
4	COMM 2012-CCRE4 Mortgage Trust	3.251%	10/15/45	1,990		2,009
4	COMM 2012-CCRE5 Mortgage Trust	2.771%	12/10/45	2,640		2,676
4	COMM 2013-CCRE10 Mortgage Trust	3.795%	8/10/46	7,868		8,114
4	COMM 2013-CCRE11 Mortgage Trust	3.983%	8/10/50	13,317		14,188
4	COMM 2013-CCRE11 Mortgage Trust	4.258%	8/10/50	43,975		47,187
4	COMM 2013-CCRE12 Mortgage Trust	3.623%	10/10/46	12,747		13,132
4	COMM 2013-CCRE12 Mortgage Trust	3.765%	10/10/46	7,790		8,166
4	COMM 2013-CCRE12 Mortgage Trust	4.046%	10/10/46	41,651		44,246
4	COMM 2013-CCRE13 Mortgage Trust	4.194%	11/10/46	32,690		35,040

4

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	COMM 2013-CCRE13 Mortgage Trust	4.898%	11/10/46	4,517		4,904
4	COMM 2013-CCRE13 Mortgage Trust	4.898%	11/10/46	8,240		8,773
4,10	COMM 2013-CCRE6 Mortgage Trust	3.147%	3/10/46	17,360		17,700
4,10	COMM 2013-CCRE6 Mortgage Trust	3.397%	3/10/46	2,380		2,431
4	COMM 2013-CCRE8 Mortgage Trust	3.334%	6/10/46	1,851		1,907
4	COMM 2013-CCRE8 Mortgage Trust	3.612%	6/10/46	40,399		42,226
4	COMM 2013-CCRE9 Mortgage Trust	4.232%	7/10/45	12,669		13,558
4,10	COMM 2013-CCRE9 Mortgage Trust	4.255%	7/10/45	12,690		12,512
4,10	COMM 2013-CCRE9 Mortgage Trust	4.255%	7/10/45	11,250		11,891
4,10	COMM 2013-LC13 Mortgage Trust	3.774%	8/10/46	9,057		9,335
4	COMM 2013-LC13 Mortgage Trust	4.205%	8/10/46	13,605		14,546
4,10	COMM 2013-LC13 Mortgage Trust	4.557%	8/10/46	18,565		19,881
4	COMM 2013-LC6 Mortgage Trust	2.941%	1/10/46	4,100		4,179
4,10	COMM 2013-SFS Mortgage Trust	2.987%	4/12/35	5,490		5,557
4,10	COMM 2014-277P Mortgage Trust	3.611%	8/10/49	33,245		35,228
4	COMM 2014-CCRE14 Mortgage Trust	3.955%	2/10/47	1,915		2,035
4	COMM 2014-CCRE14 Mortgage Trust	4.236%	2/10/47	18,995		20,417
4	COMM 2014-CCRE15 Mortgage Trust	2.928%	2/10/47	4,956		4,962
4	COMM 2014-CCRE15 Mortgage Trust	4.074%	2/10/47	20,250		21,648
4	COMM 2014-CCRE15 Mortgage Trust	4.426%	2/10/47	13,450		14,385
4	COMM 2014-CCRE17 Mortgage Trust	3.700%	5/10/47	1,930		2,030
4	COMM 2014-CCRE17 Mortgage Trust	3.977%	5/10/47	47,271		50,547
4	COMM 2014-CCRE17 Mortgage Trust	4.174%	5/10/47	27,380		29,230
4	COMM 2014-CCRE17 Mortgage Trust	4.786%	5/10/47	10,175		10,721
4	COMM 2014-CCRE18 Mortgage Trust	3.550%	7/15/47	9,572		10,010
4	COMM 2014-CCRE18 Mortgage Trust	3.828%	7/15/47	28,552		30,363
4	COMM 2014-CCRE20 Mortgage Trust	3.326%	11/10/47	1,520		1,585
4	COMM 2014-CCRE20 Mortgage Trust	3.590%	11/10/47	36,585		38,579
4	COMM 2014-CCRE21 Mortgage Trust	3.528%	12/10/47	36,503		38,197
4	COMM 2014-LC17 Mortgage Trust	3.917%	10/10/47	11,570		12,380
4	COMM 2015-CCRE22 Mortgage Trust	3.309%	3/10/48	36,015		37,560
4	COMM 2015-CCRE24 Mortgage Trust	3.696%	8/10/48	11,345		12,084
4	COMM 2015-CCRE25 Mortgage Trust	3.759%	8/10/48	38,840		41,467
4	COMM 2015-CCRE26 Mortgage Trust	3.630%	10/10/48	22,007		23,351
4	COMM 2015-CCRE27 Mortgage Trust	3.612%	10/10/48	11,974		12,701
4	COMM 2015-CCRE27 Mortgage Trust	4.471%	10/10/48	8,118		8,596
4	COMM 2015-LC19 Mortgage Trust	3.183%	2/10/48	9,930		10,287
4,10	Core Industrial Trust 2015-TEXW	3.077%	2/10/34	42,380		43,199
4	CSAIL 2015-C2 Commercial Mortgage Trust	3.504%	6/15/57	42,350		44,485
4	CSAIL 2015-C3 Commercial Mortgage Trust	3.718%	8/15/48	16,636		17,669
4	CSAIL 2015-C3 Commercial Mortgage Trust	4.355%	8/15/48	10,600		10,323
4	CSAIL 2015-C4 Commercial Mortgage Trust	3.808%	11/15/48	41,262		44,155
4	CSAIL 2016-C5 Commercial Mortgage Trust	4.536%	11/15/48	7,660		8,148
4	CSAIL 2016-C7 Commercial Mortgage Trust	3.502%	11/15/49	57,449		60,274
4	CSAIL 2017-C8 Commercial Mortgage Trust	3.392%	6/15/50	15,680		16,416
4	CSAIL 2018-CX12 Commercial Mortgage Trust	4.224%	8/15/51	20,120		22,338
4	CSAIL 2019-C15 Commercial Mortgage Trust	4.053%	3/15/52	12,260		13,491
4,10	Daimler Trucks Retail Trust 2018-1	3.030%	11/15/24	19,110		19,264
4,10	Daimler Trucks Retail Trust 2019-1	2.790%	5/15/25	12,480		12,648
4	DBGS Mortgage Trust 2018-C1	4.466%	10/15/51	41,130		46,755
4	DBJPM 16-C1 Mortgage Trust	3.343%	5/10/49	2,050		2,034
4	DBJPM 17-C6 Mortgage Trust	3.328%	6/10/50	21,940		23,008
4,7,10	DELAM 2018-1, 1M USD LIBOR + 0.700%	2.998%	11/19/25	18,960		18,980
4,10	Dell Equipment Finance Trust 2019-1	2.830%	3/22/24	33,290		33,591
4	Discover Card Execution Note Trust 2019-A1	3.040%	7/15/24	33,870		34,643
4,10	DLL Securitization Trust Series 2018-A3	3.460%	1/20/22	35,500		35,940
4,10	DLL Securitization Trust Series 2018-A4	3.590%	6/20/24	8,550		8,775
4,10	DLL Securitization Trust Series 2019-DA1	2.890%	4/20/23	33,900		34,206
4,10	DLL Securitization Trust Series 2019-DA1	2.920%	4/20/27	24,750		25,143
§,4,10	DLL Securitization Trust Series 2019-MA2	2.340%	9/20/23	27,810		27,806
4,10	DRB Prime Student Loan Trust 2017-C	2.810%	11/25/42	26,073		26,359
4,10	Drive Auto Receivables Trust 2015-BA	3.840%	7/15/21	2,849		2,854
4,10	Drive Auto Receivables Trust 2015-CA	4.200%	9/15/21	4,789		4,800
4,10	Drive Auto Receivables Trust 2015-DA	4.590%	1/17/23	20,225		20,412

5

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4,10	Drive Auto Receivables Trust 2016-BA	4.530%	8/15/23	20,835		21,096
4,10	Drive Auto Receivables Trust 2016-C	4.180%	3/15/24	23,090		23,480
4	Drive Auto Receivables Trust 2017-1	3.840%	3/15/23	2,400		2,425
4	Drive Auto Receivables Trust 2017-3	2.800%	7/15/22	6,308		6,316
4	Drive Auto Receivables Trust 2018-2	3.220%	4/15/22	13,915		13,937
4	Drive Auto Receivables Trust 2018-2	3.630%	8/15/24	29,120		29,325
4	Drive Auto Receivables Trust 2018-2	4.140%	8/15/24	20,430		20,911
4	Drive Auto Receivables Trust 2018-3	3.370%	9/15/22	30,890		30,968
4	Drive Auto Receivables Trust 2018-3	3.720%	9/16/24	30,350		30,689
4	Drive Auto Receivables Trust 2018-3	4.300%	9/16/24	16,140		16,627
4	Drive Auto Receivables Trust 2018-5	3.680%	7/15/23	20,200		20,534
4	Drive Auto Receivables Trust 2018-5	3.990%	1/15/25	19,260		19,822
4	Drive Auto Receivables Trust 2018-5	4.300%	4/15/26	26,460		27,379
4	Drive Auto Receivables Trust 2019-2	3.040%	3/15/23	16,400		16,528
4	Drive Auto Receivables Trust 2019-2	3.690%	8/17/26	15,870		16,280
4,7,10	Edsouth Indenture No. 9 LLC 2015-1, 1M USD LIBOR + 0.800%	3.066%	10/25/56	15,348		15,230
4,10	EDvestinU Private Education Loan Trust (EDVES) 2019-A	3.580%	11/25/38	9,489		9,707
4,10	ELFI Graduate Loan Program 2018-A LLC	3.430%	8/25/42	24,313		24,907
4,10	Enterprise Fleet Financing LLC Series 2018-3	3.380%	5/20/24	15,790		15,959
4,10	Enterprise Fleet Financing LLC Series 2019-1	2.980%	10/22/24	9,470		9,568
4,10	Enterprise Fleet Financing LLC Series 2019-1	3.070%	10/22/24	13,690		13,975
4,6,7	Fannie Mae Connecticut Avenue Securities 2016-C04, 1M USD LIBOR + 1.450%	3.716%	1/25/29	1,399		1,403
4,6,7,10	Fannie Mae Connecticut Avenue Securities 2019-R03, 1M USD LIBOR + 0.750%	3.016%	9/25/31	19,497		19,518
4,6,7,10	Fannie Mae Connecticut Avenue Securities 2019-R04, 1M USD LIBOR + 0.750%	3.016%	6/25/39	19,955		19,983
§,4,6,7,10	Fannie Mae Connecticut Avenue Securities 2019-R05, 1M USD LIBOR + 0.750%	3.016%	7/25/39	50,300		50,300
4,6	Fannie Mae Grantor Trust 2017-T1	2.898%	6/25/27	19,232		19,660
4	First Horizon Mortgage Pass-Through Trust 2006-AR3	3.721%	11/25/36	4,150		3,663
4	First Horizon Mortgage Pass-Through Trust 2006-AR4	4.722%	1/25/37	8,099		6,906
4,7	First National Master Note Trust 2017-2, 1M USD LIBOR + 0.440%	2.765%	10/16/23	17,910		17,928
4,10	Flagship Credit Auto Trust 2018-1	3.410%	5/15/23	10,024		10,133
4	Ford Credit Auto Lease Trust 2017-B	2.030%	12/15/20	18,843		18,830
4	Ford Credit Auto Lease Trust 2018-A	3.050%	8/15/21	6,530		6,586
4	Ford Credit Auto Lease Trust 2018-A	3.170%	9/15/21	11,780		11,875
4	Ford Credit Auto Lease Trust 2018-B	3.190%	12/15/21	39,260		39,632
4	Ford Credit Auto Lease Trust 2019-A	2.900%	5/15/22	39,880		40,251
4	Ford Credit Auto Lease Trust 2019-A	3.250%	7/15/22	25,150		25,476
4,10	Ford Credit Auto Owner Trust 2014-REV2	2.310%	4/15/26	26,677		26,671
4,10	Ford Credit Auto Owner Trust 2014-REV2	2.510%	4/15/26	7,475		7,475
4,10	Ford Credit Auto Owner Trust 2015-REV2	2.440%	1/15/27	61,000		61,033
4	Ford Credit Auto Owner Trust 2016-B	1.850%	9/15/21	7,040		7,024
4,10	Ford Credit Auto Owner Trust 2016-REV1	2.310%	8/15/27	20,800		20,784
4,10	Ford Credit Auto Owner Trust 2016-REV2	2.030%	12/15/27	48,890		48,724
4,10	Ford Credit Auto Owner Trust 2017-1	2.620%	8/15/28	21,295		21,490
4,10	Ford Credit Auto Owner Trust 2017-2	2.360%	3/15/29	40,385		40,414
4,10	Ford Credit Auto Owner Trust 2017-2	2.600%	3/15/29	6,826		6,840
4,10	Ford Credit Auto Owner Trust 2017-2	2.750%	3/15/29	13,976		14,013
4,10	Ford Credit Auto Owner Trust 2018-2	3.760%	1/15/30	7,305		7,541
4	Ford Credit Auto Owner Trust 2018-A	3.030%	11/15/22	37,580		37,961
4	Ford Credit Auto Owner Trust 2018-B	3.380%	3/15/24	12,840		13,194
4,10	Ford Credit Auto Owner Trust 2018-REV1	3.190%	7/15/31	101,570		104,522
4,10	Ford Credit Auto Owner Trust 2018-REV1	3.340%	7/15/31	32,080		32,463
4,10	Ford Credit Auto Owner Trust 2018-REV2	3.470%	1/15/30	27,020		28,129
4,10	Ford Credit Auto Owner Trust 2018-REV2	3.610%	1/15/30	16,295		16,760
4,10	Ford Credit Auto Owner Trust 2019-1	3.520%	7/15/30	20,530		21,366
4	Ford Credit Auto Owner Trust 2019-A	2.850%	8/15/24	26,820		27,363
4	Ford Credit Auto Owner Trust 2019-A	3.020%	10/15/24	10,330		10,555

6

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Ford Credit Auto Owner Trust 2019-A	3.250%	9/15/25	10,980		11,216
4	Ford Credit Floorplan Master Owner Trust A Series 2015-5	2.390%	8/15/22	23,545		23,572
4	Ford Credit Floorplan Master Owner Trust A Series 2017-2	2.160%	9/15/22	60,820		60,730
4	Ford Credit Floorplan Master Owner Trust A Series 2018-1	2.950%	5/15/23	83,210		84,250
4	Ford Credit Floorplan Master Owner Trust A Series 2018-3	3.520%	10/15/23	52,330		53,713
4	Ford Credit Floorplan Master Owner Trust A Series 2019-1	2.840%	3/15/24	45,500		46,203
4	Ford Credit Floorplan Master Owner Trust A Series 2019-2	3.060%	4/15/26	6,210		6,402
4	Ford Credit Floorplan Master Owner Trust A Series 2019-2	3.250%	4/15/26	7,753		7,940
4,6,7,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA2, 1M USD LIBOR + 0.730%	3.030%	7/25/49	11,520		11,538
4,6,7,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA2, 1M USD LIBOR + 0.800%	3.066%	3/25/49	3,336		3,343
4,6,7	Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA2, 1M USD LIBOR + 2.200%	4.466%	10/25/28	391		392
4,6,7	Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA3, 1M USD LIBOR + 2.000%	4.266%	12/25/28	2,872		2,884
4,6,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2018-SPI1	3.742%	2/25/48	11,087		11,193
4,6,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2018-SPI2	3.817%	5/25/48	7,648		7,694
4,6,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2018-SPI3	4.163%	8/25/48	4,810		4,852
4,6,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2018-SPI4	4.460%	11/25/48	6,793		6,839
4,6,7,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2019-HQA2, 1M USD LIBOR + 0.700%	2.966%	4/25/49	16,430		16,450
4	GM Financial Automobile Leasing Trust 2017-3	2.010%	11/20/20	9,592		9,584
4	GM Financial Automobile Leasing Trust 2017-3	2.120%	9/20/21	4,660		4,654
4	GM Financial Automobile Leasing Trust 2017-3	2.400%	9/20/21	8,440		8,435
4	GM Financial Automobile Leasing Trust 2017-3	2.730%	9/20/21	5,140		5,140
4	GM Financial Automobile Leasing Trust 2018-2	3.060%	6/21/21	25,400		25,509
4	GM Financial Automobile Leasing Trust 2018-3	3.180%	6/21/21	28,180		28,396
4,10	GM Financial Consumer Automobile 2017-3	2.130%	3/16/23	13,250		13,228
4,10	GM Financial Consumer Automobile 2017-3	2.330%	3/16/23	2,650		2,651
4	GM Financial Consumer Automobile 2018-3	3.160%	1/16/24	7,250		7,480
4	GM Financial Consumer Automobile 2018-4	3.320%	6/17/24	6,690		6,934
4	GM Financial Consumer Automobile 2019-1	3.110%	7/16/24	8,770		9,016
4	GM Financial Consumer Automobile 2019-2	2.710%	8/16/24	14,660		14,925
4	GM Financial Consumer Automobile 2019-3	2.180%	4/16/24	28,490		28,453
4	GMACM Mortgage Loan Trust 2005-AR6	4.154%	11/19/35	1,675		1,587
4,10	GMF Floorplan Owner Revolving Trust 2017-2	2.130%	7/15/22	54,900		54,795
4,10	GMF Floorplan Owner Revolving Trust 2017-2	2.440%	7/15/22	17,100		17,077
4,10	GMF Floorplan Owner Revolving Trust 2017-2	2.630%	7/15/22	9,380		9,376
4,10	GMF Floorplan Owner Revolving Trust 2018-2	3.130%	3/15/23	53,560		54,298
4,10	GMF Floorplan Owner Revolving Trust 2019-1	2.700%	4/15/24	13,920		14,032
4,10	Golden Credit Card Trust 2016-5A	1.600%	9/15/21	46,712		46,657
4,10	Golden Credit Card Trust 2018-1A	2.620%	1/15/23	153,710		154,622
4,10	Golden Credit Card Trust 2018-4A	3.440%	10/15/25	87,460		90,881
4,7,10	Gosforth Funding 2018-1A plc, 3M USD LIBOR + 0.450%	2.971%	8/25/60	10,626		10,606
4,10	GRACE Mortgage Trust 2014-A	3.369%	6/10/28	20,500		20,839
4,10	GreatAmerica Leasing Receivables Funding LLC Series 2018-1	2.830%	6/17/24	5,140		5,174
4,10	GreatAmerica Leasing Receivables Funding LLC Series 2019-1	3.210%	2/18/25	5,260		5,385
4,10	GS Mortgage Securities Trust 2012-ALOHA	3.551%	4/10/34	32,716		33,655

7

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4,10	GS Mortgage Securities Trust 2010-C2	5.180%	12/10/43	3,530		3,641
4,10	GS Mortgage Securities Trust 2011-GC3	5.637%	3/10/44	2,280		2,370
4,10	GS Mortgage Securities Trust 2012-BWTR	2.954%	11/5/34	36,047		36,697
4,10	GS Mortgage Securities Trust 2012-GC6	4.948%	1/10/45	1,000		1,053
4	GS Mortgage Securities Trust 2012-GCJ7	5.686%	5/10/45	7,150		7,543
4	GS Mortgage Securities Trust 2013-GC13	4.050%	7/10/46	22,934		24,532
4,10	GS Mortgage Securities Trust 2013-GC13	4.083%	7/10/46	5,650		5,865
4	GS Mortgage Securities Trust 2013-GCJ12	3.135%	6/10/46	13,060		13,428
4	GS Mortgage Securities Trust 2013-GCJ12	3.777%	6/10/46	8,250		8,506
4	GS Mortgage Securities Trust 2013-GCJ14	3.817%	8/10/46	6,668		6,862
4	GS Mortgage Securities Trust 2013-GCJ14	3.955%	8/10/46	22,020		23,173
4	GS Mortgage Securities Trust 2013-GCJ14	4.243%	8/10/46	49,405		52,876
4	GS Mortgage Securities Trust 2014-GC20	3.998%	4/10/47	41,343		44,053
4	GS Mortgage Securities Trust 2014-GC20	4.258%	4/10/47	1,410		1,494
4	GS Mortgage Securities Trust 2014-GC24	3.931%	9/10/47	44,760		47,859
4	GS Mortgage Securities Trust 2014-GC24	4.162%	9/10/47	13,246		14,058
4	GS Mortgage Securities Trust 2014-GC24	4.512%	9/10/47	10,665		11,121
4	GS Mortgage Securities Trust 2014-GC24	4.533%	9/10/47	17,556		16,250
4	GS Mortgage Securities Trust 2014-GC26	3.364%	11/10/47	19,370		20,131
4	GS Mortgage Securities Trust 2014-GC26	3.629%	11/10/47	47,290		50,028
4	GS Mortgage Securities Trust 2015-GC28	3.136%	2/10/48	39,290		40,615
4	GS Mortgage Securities Trust 2015-GC28	3.396%	2/10/48	35,655		37,295
4	GS Mortgage Securities Trust 2015-GC30	3.382%	5/10/50	12,225		12,794
4	GS Mortgage Securities Trust 2015-GC32	3.764%	7/10/48	4,636		4,951
4	GS Mortgage Securities Trust 2015-GC34	3.506%	10/10/48	26,732		28,180
4	GS Mortgage Securities Trust 2015-GC34	4.653%	10/10/48	12,080		12,788
4	GS Mortgage Securities Trust 2016-GS3	2.850%	10/10/49	11,930		12,160
4	GS Mortgage Securities Trust 2018-GS10	4.155%	7/10/51	18,110		20,127
4	GS Mortgage Securities Trust 2018-GS9	3.992%	3/10/51	4,990		5,469
4	GS Mortgage Securities Trust 2019-GC40	3.160%	7/10/52	3,920		4,061
10	GTP Acquisition Partners I LLC	2.350%	6/15/20	1,540		1,533
10	GTP Acquisition Partners I LLC	3.482%	6/16/25	26,340		27,107
4,10	Hardee’s Funding HNGRY 2018-1	4.959%	6/20/48	1,990		2,101
4,10	Hardee’s Funding HNGRY 2018-1A	5.710%	6/20/48	27,691		29,622
4,10	Harley Marine Financing LLC Barge 2018-1	5.682%	5/15/43	17,986		14,785
4	Harley-Davidson Motorcycle Trust 2019-A	2.340%	2/15/24	40,800		40,860
4	Harley-Davidson Motorcycle Trust 2019-A	2.390%	11/15/26	9,060		9,079
4,10	Hertz Fleet Lease Funding LP 2018-1	3.230%	5/10/32	35,957		36,374
4,10	Hertz Vehicle Financing II LP 2015-3A	2.670%	9/25/21	6,785		6,787
4,10	Hertz Vehicle Financing II LP 2016-2A	2.950%	3/25/22	14,756		14,819
4,10	Hertz Vehicle Financing II LP 2018-1A	3.600%	2/25/24	12,520		12,689
4,10	Hertz Vehicle Financing LLC 2017-2A	4.200%	10/25/23	7,860		8,117
4,10	Hilton USA Trust 2016-HHV	3.719%	11/5/38	3,950		4,172
4,7,10	Holmes Master Issuer plc 2018-1, 3M USD LIBOR + 0.360%	2.663%	10/15/54	25,492		25,468
4,7,10	Holmes Master Issuer plc 2018-2A, 3M USD LIBOR + 0.420%	2.723%	10/15/54	17,599		17,580
4	Honda Auto Receivables 2017-4 Owner Trust	2.210%	3/21/24	9,030		9,038
4	Honda Auto Receivables 2018-2 Owner Trust	3.010%	5/18/22	14,140		14,292
4	Honda Auto Receivables 2018-3 Owner Trust	2.950%	8/22/22	14,910		15,074
4	Honda Auto Receivables 2018-3 Owner Trust	3.070%	11/21/24	5,460		5,569
4	Honda Auto Receivables 2018-4 Owner Trust	2.520%	6/21/23	100,490		101,352
4	Honda Auto Receivables 2018-4 Owner Trust	2.540%	3/21/25	20,390		20,632
4	Honda Auto Receivables 2018-4 Owner Trust	3.300%	7/15/25	7,720		7,949
4	Honda Auto Receivables 2019-1 Owner Trust	2.900%	6/18/24	7,470		7,621
4,10	Houston Galleria Mall Trust 2015-HGLR	3.087%	3/5/37	40,670		41,691
4,10	Hudson Yards 2019-30HY	3.228%	7/10/39	11,750		12,181
4,10	Hudsons Bay Simon JV Trust 2015-HB7	3.914%	8/5/34	14,750		15,048
4,10	Hyundai Auto Lease Securitization Trust 2017-C	2.120%	2/16/21	23,085		23,073
4,10	Hyundai Auto Lease Securitization Trust 2017-C	2.210%	9/15/21	7,090		7,082
4,10	Hyundai Auto Lease Securitization Trust 2017-C	2.460%	7/15/22	6,480		6,478
4,10	Hyundai Auto Lease Securitization Trust 2018-A	2.810%	4/15/21	47,455		47,604
4,10	Hyundai Auto Lease Securitization Trust 2018-A	2.890%	3/15/22	15,010		15,103
4,10	Hyundai Auto Lease Securitization Trust 2019-A	2.980%	7/15/22	26,560		26,836

8

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4,10	Hyundai Auto Lease Securitization Trust 2019-A	3.050%	12/15/22	4,370		4,443
4	Hyundai Auto Receivables Trust 2015-C	2.150%	11/15/21	3,510		3,507
4	Hyundai Auto Receivables Trust 2015-C	2.550%	11/15/21	8,360		8,367
4	Hyundai Auto Receivables Trust 2019-A	2.710%	5/15/25	10,660		10,837
4	Hyundai Auto Receivables Trust 2019-A	2.940%	5/15/25	5,655		5,761
4,10	Hyundai Floorplan Master Owner Trust Series 2019-1A	2.680%	4/15/24	17,400		17,571
4,7,10	Invitation Homes 2017-SFR2 Trust, 1M USD LIBOR + 0.850%	3.164%	12/17/36	27,801		27,629
4,7,10	Invitation Homes 2017-SFR2 Trust, 1M USD LIBOR + 1.150%	3.464%	12/17/36	9,957		9,932
4,7,10	Invitation Homes 2018-SFR1 Trust, 1M USD LIBOR + 0.700%	3.014%	3/17/37	39,445		38,946
4,7,10	Invitation Homes 2018-SFR1 Trust, 1M USD LIBOR + 0.950%	3.264%	3/17/37	9,890		9,772
4,10	Irvine Core Office Trust 2013-IRV	3.173%	5/15/48	14,791		15,250
4	John Deere Owner Trust 2018-B	3.230%	6/16/25	10,350		10,593
4	John Deere Owner Trust 2018-B	3.000%	1/15/26	6,740		6,904
4	John Deere Owner Trust 2019-B	2.320%	5/15/26	9,460		9,456
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2009-IWST	5.633%	12/5/27	6,185		6,250
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2010-C1	4.608%	6/15/43	380		382
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2010-C2	4.070%	11/15/43	2,656		2,691
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2010-C2	5.599%	11/15/43	6,225		6,369
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2010-C2	5.599%	11/15/43	7,100		7,280
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2011-C3	4.717%	2/15/46	23,837		24,458
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2011-C5	5.374%	8/15/46	4,100		4,319
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2011-RR1	4.717%	3/16/46	2,778		2,854
4	JP Morgan Chase Commercial Mortgage Securities Trust 2012-C6	3.507%	5/15/45	14,120		14,546
4	JP Morgan Chase Commercial Mortgage Securities Trust 2012-C8	2.829%	10/15/45	10,318		10,474
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2012-C8	3.424%	10/15/45	4,030		4,127
4	JP Morgan Chase Commercial Mortgage Securities Trust 2012-CIBX	4.271%	6/15/45	27,000		28,209
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2012-HSBC	3.093%	7/5/32	5,575		5,689
4	JP Morgan Chase Commercial Mortgage Securities Trust 2012-LC9	2.840%	12/15/47	40,130		40,749
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C13	3.994%	1/15/46	13,443		14,185
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C13	4.066%	1/15/46	9,350		9,747
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16	3.674%	12/15/46	7,970		8,187
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16	3.881%	12/15/46	2,330		2,472
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16	4.166%	12/15/46	14,880		15,932
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16	4.517%	12/15/46	14,600		15,674
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16	4.963%	12/15/46	21,150		22,962
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16	5.027%	12/15/46	9,770		10,531
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-LC11	2.960%	4/15/46	28,354		28,965

9

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	JP Morgan Chase Commercial Mortgage Securities Trust 2014-C20	3.461%	7/15/47	29,467		30,250
4	JP Morgan Chase Commercial Mortgage Securities Trust 2016-JP3	2.870%	8/15/49	17,595		17,972
4	JP Morgan Chase Commercial Mortgage Securities Trust 2016-JP4	3.648%	12/15/49	14,370		15,360
4	JP Morgan Chase Commercial Mortgage Securities Trust 2017-JP6	3.490%	7/15/50	12,517		13,262
4	JPMBB Commercial Mortgage Securities Trust 2013-C12	3.664%	7/15/45	17,866		18,711
4	JPMBB Commercial Mortgage Securities Trust 2013-C12	4.039%	7/15/45	7,520		7,906
4	JPMBB Commercial Mortgage Securities Trust 2013-C14	3.761%	8/15/46	13,849		14,255
4	JPMBB Commercial Mortgage Securities Trust 2013-C14	4.133%	8/15/46	13,870		14,783
4	JPMBB Commercial Mortgage Securities Trust 2013-C15	3.659%	11/15/45	3,350		3,442
4	JPMBB Commercial Mortgage Securities Trust 2013-C15	4.131%	11/15/45	27,200		29,062
4	JPMBB Commercial Mortgage Securities Trust 2013-C15	4.927%	11/15/45	17,820		19,243
4	JPMBB Commercial Mortgage Securities Trust 2013-C15	5.198%	11/15/45	13,495		14,617
4	JPMBB Commercial Mortgage Securities Trust 2013-C17	4.199%	1/15/47	22,860		24,536
4	JPMBB Commercial Mortgage Securities Trust 2014-C18	4.079%	2/15/47	36,630		39,183
4	JPMBB Commercial Mortgage Securities Trust 2014-C18	4.439%	2/15/47	12,950		13,896
4	JPMBB Commercial Mortgage Securities Trust 2014-C18	4.812%	2/15/47	13,200		14,244
4	JPMBB Commercial Mortgage Securities Trust 2014-C18	4.812%	2/15/47	5,850		6,214
4	JPMBB Commercial Mortgage Securities Trust 2014-C19	3.997%	4/15/47	1,975		2,106
4	JPMBB Commercial Mortgage Securities Trust 2014-C24	3.639%	11/15/47	10,597		11,192
4	JPMBB Commercial Mortgage Securities Trust 2014-C26	3.231%	1/15/48	29,560		30,547
4	JPMBB Commercial Mortgage Securities Trust 2014-C26	3.494%	1/15/48	48,480		50,900
4	JPMBB Commercial Mortgage Securities Trust 2015-C27	3.179%	2/15/48	16,945		17,575
4	JPMBB Commercial Mortgage Securities Trust 2015-C30	3.551%	7/15/48	23,680		24,938
4	JPMBB Commercial Mortgage Securities Trust 2015-C30	3.822%	7/15/48	51,660		55,406
4	JPMBB Commercial Mortgage Securities Trust 2015-C30	4.226%	7/15/48	15,901		17,104
4	JPMBB Commercial Mortgage Securities Trust 2015-C31	3.801%	8/15/48	21,082		22,601
4	JPMBB Commercial Mortgage Securities Trust 2015-C32	3.598%	11/15/48	12,061		12,802
4	JPMBB Commercial Mortgage Securities Trust 2015-C33	3.770%	12/15/48	22,187		23,790
4	JPMCC Commercial Mortgage Securities Trust 2017-JP5	3.723%	3/15/50	33,410		35,888
4	JPMCC Commercial Mortgage Securities Trust 2017-JP7	3.454%	9/15/50	10,675		11,281
4	JPMDB Commercial Mortgage Securities Trust 2016-C4	3.141%	12/15/49	6,430		6,661
4	JPMDB Commercial Mortgage Securities Trust 2017-C7	3.409%	10/15/50	10,453		11,049

10

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	JPMDB Commercial Mortgage Securities Trust 2018-C8	4.211%	6/15/51	8,500		9,444
4,7,10	Lanark Master Issuer plc 2018-1A, 3M USD LIBOR + 0.420%	2.943%	12/22/69	21,315		21,281
4,7,10	Lanark Master Issuer plc 2018-2A, 1M USD LIBOR + 0.840%	2.943%	12/22/69	11,095		11,125
4,10	Laurel Road Prime Student Loan Trust 2018-B	3.540%	5/26/43	30,280		31,365
4,10	LCCM Mortgage Trust 2014-A	3.388%	5/15/31	18,640		18,931
4	Louisiana Local Government Environmental Facilities & Community Development Authority Revenue 2010-ELL	3.450%	2/1/22	3,234		3,238
4,10	Madison Avenue Trust 2013-650M	3.843%	10/12/32	12,460		12,610
4	MASTR Adjustable Rate Mortgages Trust 2004-3	4.656%	4/25/34	455		446
4	Mercedes-Benz Auto Lease Trust 2018-A	2.200%	4/15/20	2,200		2,199
4	Mercedes-Benz Auto Lease Trust 2018-A	2.410%	2/16/21	61,794		61,817
4	Mercedes-Benz Auto Receivables Trust 2018-1	3.150%	10/15/24	10,430		10,736
4,10	Mercedes-Benz Master Owner Trust 2019-B	2.610%	5/15/24	58,000		58,635
4	Merrill Lynch Mortgage Investors Trust MLMI Series 2003-A2	3.713%	2/25/33	551		538
4	Merrill Lynch Mortgage Investors Trust MLMI Series 2003-A4	4.989%	7/25/33	334		331
4,10	MMAF Equipment Finance LLC 2015-AA	2.490%	2/19/36	33,646		33,708
4,10	MMAF Equipment Finance LLC 2018-A	3.390%	1/10/25	6,560		6,731
4,10	MMAF Equipment Finance LLC 2018-A	3.610%	3/10/42	3,580		3,715
4,10	MMAF Equipment Finance LLC 2019-A	3.080%	11/12/41	6,400		6,536
4	Morgan Stanley Bank of America Merrill Lynch Trust 2012-C5	3.176%	8/15/45	21,548		22,066
4	Morgan Stanley Bank of America Merrill Lynch Trust 2012-C5	3.792%	8/15/45	2,000		2,068
4	Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6	2.858%	11/15/45	4,923		5,001
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C10	4.082%	7/15/46	28,493		30,351
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C10	4.082%	7/15/46	3,372		3,439
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C11	3.960%	8/15/46	8,093		8,514
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C11	4.154%	8/15/46	24,216		25,791
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C12	3.824%	10/15/46	6,452		6,635
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C12	4.259%	10/15/46	3,830		4,109
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C13	4.039%	11/15/46	8,300		8,865
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7	2.918%	2/15/46	6,400		6,522
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7	3.214%	2/15/46	2,940		2,994
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C9	3.102%	5/15/46	27,425		28,169
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C14	4.064%	2/15/47	16,600		17,736
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C14	4.384%	2/15/47	17,500		18,860
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15	3.773%	4/15/47	37,219		39,219
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15	4.051%	4/15/47	22,710		24,265
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15	4.911%	4/15/47	1,895		2,049
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C16	3.892%	6/15/47	38,845		41,341

11

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C16	4.094%	6/15/47	9,540		10,105
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C16	4.337%	6/15/47	22,920		24,378
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C16	4.770%	6/15/47	12,300		12,979
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C17	3.741%	8/15/47	32,178		34,082
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C17	4.011%	8/15/47	7,460		7,894
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18	3.923%	10/15/47	13,400		14,318
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C19	3.326%	12/15/47	17,350		17,859
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C19	3.526%	12/15/47	23,220		24,427
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20	3.069%	2/15/48	21,800		22,226
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20	3.249%	2/15/48	37,941		39,387
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C23	3.451%	7/15/50	4,230		4,430
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C23	3.719%	7/15/50	18,458		19,683
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C24	3.479%	5/15/48	20,280		21,335
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C24	3.732%	5/15/48	28,104		29,968
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C25	3.635%	10/15/48	7,814		8,295
4	Morgan Stanley Bank of America Merrill Lynch Trust 2016-C29	3.325%	5/15/49	27,615		28,823
4	Morgan Stanley Bank of America Merrill Lynch Trust 2016-C29	4.750%	5/15/49	2,210		2,339
4	Morgan Stanley Bank of America Merrill Lynch Trust 2016-C32	3.720%	12/15/49	61,107		65,402
4	Morgan Stanley Bank of America Merrill Lynch Trust 2017-C34	3.536%	11/15/52	19,660		20,836
4	Morgan Stanley Capital I Trust 2012-C4	3.244%	3/15/45	16,052		16,376
4	Morgan Stanley Capital I Trust 2012-C4	3.773%	3/15/45	2,500		2,573
4,10	Morgan Stanley Capital I Trust 2012-STAR	3.201%	8/5/34	17,287		17,696
4,10	Morgan Stanley Capital I Trust 2014-150E	3.912%	9/9/32	27,955		29,703
4,10	Morgan Stanley Capital I Trust 2014-CPT	3.350%	7/13/29	24,440		24,874
4,10	Morgan Stanley Capital I Trust 2015-420	3.727%	10/12/50	28,871		30,231
4	Morgan Stanley Capital I Trust 2015-UBS8	3.809%	12/15/48	40,034		42,929
4	Morgan Stanley Capital I Trust 2015-UBS8	4.587%	12/15/48	11,440		12,044
4	Morgan Stanley Capital I Trust 2016-BNK2	3.049%	11/15/49	11,960		12,326
4	Morgan Stanley Capital I Trust 2016-UB11	2.782%	8/15/49	34,337		34,703
4	Morgan Stanley Capital I Trust 2016-UBS9	3.594%	3/15/49	19,710		20,884
4	Morgan Stanley Capital I Trust 2017-HR2	3.509%	12/15/50	5,420		5,714
4	Morgan Stanley Capital I Trust 2017-HR2	3.587%	12/15/50	6,765		7,197
4	Morgan Stanley Capital I Trust 2018-H4	4.247%	12/15/51	4,440		4,897
4	Morgan Stanley Mortgage Loan Trust 2006-8AR	4.484%	6/25/36	3,839		3,846
4,7,10	Motor plc 2017-1A, 1M USD LIBOR + 0.530%	2.796%	9/25/24	22,191		22,188
4,10	MSBAM Commercial Mortgage Securities Trust 2012-CKSV	3.277%	10/15/30	37,985		38,260
4,7,10	Navient Student Loan Trust 2016-3, 1M USD LIBOR + 0.850%	3.116%	6/25/65	4,338		4,348
4,7,10	Navient Student Loan Trust 2016-6A, 1M USD LIBOR + 0.750%	3.016%	3/25/66	25,878		26,015
4,10	Navient Student Loan Trust 2017-A	2.880%	12/16/58	17,580		17,749
4,7,10	Navient Student Loan Trust 2018-1, 1M USD LIBOR + 0.190%	2.456%	3/25/67	830		830
4,10	Navient Student Loan Trust 2018-BA	3.430%	12/15/59	75,558		76,614

12

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4,10	Navient Student Loan Trust 2018-BA	3.610%	12/15/59	13,300		13,817
4,10	Navient Student Loan Trust 2018-BA	4.000%	12/15/59	63,650		67,419
4,10	Navient Student Loan Trust 2018-CA	3.010%	6/16/42	7,493		7,538
4,10	Navient Student Loan Trust 2018-CA	3.520%	6/16/42	54,450		56,215
4,10	Navient Student Loan Trust 2018-DA	4.000%	12/15/59	38,720		40,234
4,10	Navient Student Loan Trust 2019-B	3.390%	12/15/59	17,930		18,465
4,7	New Mexico Educational Assistance Foundation 2013-1, 1M USD LIBOR + 0.700%	3.102%	1/2/25	11,637		11,537
4	Nissan Auto Lease Trust 2017-B	2.050%	9/15/20	19,657		19,650
4	Nissan Auto Lease Trust 2018-B	3.350%	9/15/23	11,020		11,192
4	Nissan Auto Lease Trust 2019-A	2.760%	3/15/22	21,790		21,989
4	Nissan Auto Lease Trust 2019-A	2.780%	7/15/24	10,700		10,858
4	Nissan Auto Receivables 2017-C Owner Trust	2.120%	4/18/22	39,090		39,061
4	Nissan Auto Receivables 2017-C Owner Trust	2.280%	2/15/24	22,040		22,090
4	Nissan Auto Receivables 2018-B Owner Trust	3.160%	12/16/24	10,430		10,710
4	Nissan Auto Receivables 2019-A Owner Trust	3.000%	9/15/25	7,290		7,497
4	Nissan Auto Receivables 2019-B Owner Trust	2.500%	11/15/23	103,450		104,429
4	Nissan Auto Receivables 2019-B Owner Trust	2.540%	12/15/25	20,100		20,403
4,10	OBP Depositor LLC Trust 2010-OBP	4.646%	7/15/45	10,065		10,230
4,10	Palisades Center Trust 2016-PLSD	2.713%	4/13/33	8,360		8,372
4,7,10	Pepper Residential Securities Trust 2017-A, 1M USD LIBOR + 1.100%	3.479%	3/10/58	2,747		2,748
4,7,10	Pepper Residential Securities Trust 2018-A, 1M USD LIBOR + 0.950%	3.319%	3/12/47	753		754
4,7,10	Pepper Residential Securities Trust 2021-A1U, 1M USD LIBOR + 0.880%	3.212%	1/16/60	27,440		27,406
4,7,10	Pepper Residential Securities Trust 2022-A1U, 1M USD LIBOR + 0.350%	3.272%	6/20/60	15,069		15,035
4,7,10	Pepper Residential Securities Trust 2023-A1U, 1M USD LIBOR + 0.950%	3.250%	8/18/60	10,609		10,611
4,7,10	Permanent Master Issuer plc 2018-1A, 3M USD LIBOR + 0.380%	2.683%	7/15/58	12,200		12,202
4,10	PFS Financing Corp. 2017-B	2.220%	7/15/22	20,500		20,451
4,7,10	PFS Financing Corp. 2017-C, 1M USD LIBOR + 0.470%	2.795%	10/15/21	32,830		32,828
4,10	PFS Financing Corp. 2017-D	2.400%	10/17/22	34,130		34,117
4,10	PFS Financing Corp. 2018-D	3.190%	4/17/23	12,740		12,910
4,7,10	PHEAA Student Loan Trust 2016-2A, 1M USD LIBOR + 0.950%	3.216%	11/25/65	24,485		24,431
4,10	Progress Residential 2015-SFR2 Trust	2.740%	6/12/32	7,174		7,168
4,10	Progress Residential 2015-SFR3 Trust	3.067%	11/12/32	24,949		24,908
4,10	Progress Residential 2015-SFR3 Trust	3.733%	11/12/32	9,310		9,327
4,10	Progress Residential 2017-SFR2 Trust	2.897%	12/17/34	15,540		15,513
4,10	Progress Residential 2017-SFR2 Trust	3.196%	12/17/34	4,030		4,040
4,10	Progress Residential 2018-SFR1 Trust	3.255%	3/17/35	17,796		17,942
4,10	Progress Residential 2018-SFR1 Trust	3.484%	3/17/35	2,220		2,244
4,10	Progress Residential 2018-SFR3 Trust	3.880%	10/17/35	23,335		24,089
4	Public Service New Hampshire Funding LLC 2018-1	3.094%	2/1/26	6,949		7,058
4,7,10	Resimac Premier Series 2018-1A, 1M USD LIBOR + 0.800%	3.179%	11/10/49	23,543		23,512
4,7,10	Resimac Premier Series 2018-1NCA, 1M USD LIBOR + 0.850%	3.210%	12/5/59	30,896		30,933
4,7,10	Resimac Premier Series 2018-2, 1M USD LIBOR + 0.850%	3.229%	4/10/50	4,388		4,380
4	RFMSI Series 2006-SA2 Trust	5.109%	8/25/36	10,546		8,856
4	RFMSI Series 2006-SA3 Trust	5.250%	9/25/36	3,911		3,451
4	Santander Drive Auto Receivables Trust 2015-3	3.490%	5/17/21	12,446		12,475
4	Santander Drive Auto Receivables Trust 2016-2	3.390%	4/15/22	4,120		4,161
4	Santander Drive Auto Receivables Trust 2016-3	2.460%	3/15/22	12,099		12,095
4	Santander Drive Auto Receivables Trust 2017-3	2.760%	12/15/22	5,760		5,774
4	Santander Drive Auto Receivables Trust 2018-1	2.320%	8/16/21	2,953		2,953
4	Santander Drive Auto Receivables Trust 2018-1	2.960%	3/15/24	35,160		35,340
4	Santander Drive Auto Receivables Trust 2018-1	3.320%	3/15/24	15,340		15,508
4	Santander Drive Auto Receivables Trust 2018-3	3.290%	10/17/22	24,700		24,810

13

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Santander Drive Auto Receivables Trust 2018-3	4.070%	8/15/24	40,900		42,016
4	Santander Drive Auto Receivables Trust 2018-4	3.980%	12/15/25	21,750		22,312
4	Santander Drive Auto Receivables Trust 2018-5	4.190%	12/16/24	35,530		36,570
4,10	Santander Retail Auto Lease Trust 2017-A	2.680%	1/20/22	5,760		5,752
4,10	Santander Retail Auto Lease Trust 2018-A	2.930%	5/20/21	31,400		31,554
4,10	Santander Retail Auto Lease Trust 2018-A	3.060%	4/20/22	11,210		11,297
4,10	Santander Retail Auto Lease Trust 2018-A	3.200%	4/20/22	9,390		9,452
4,10	Santander Retail Auto Lease Trust 2018-A	3.490%	5/20/22	21,865		22,049
4,10	Santander Retail Auto Lease Trust 2019-A	2.770%	6/20/22	63,500		64,070
4,10	SBA Tower Trust	3.156%	10/8/20	10,760		10,761
4,10	Securitized Term Auto Receivables Trust 2016-1A	1.794%	2/25/21	9,377		9,353
4,10	Securitized Term Auto Receivables Trust 2017-2A	2.289%	3/25/22	10,240		10,217
4,10	Securitized Term Auto Receivables Trust 2018-1A	3.298%	11/25/22	5,360		5,476
4,10	Securitized Term Auto Receivables Trust 2018-2A	3.544%	6/26/23	6,450		6,632
4,10	SLM Private Education Loan Trust 2011-C	4.540%	10/17/44	2,996		3,013
4,10	SLM Private Education Loan Trust 2013-A	2.500%	3/15/47	4,977		4,976
4,10	SLM Private Education Loan Trust 2013-B	1.850%	6/17/30	1,309		1,308
4,10	SLM Private Education Loan Trust 2013-B	3.000%	5/16/44	14,700		14,681
4,10	SLM Private Education Loan Trust 2013-C	3.500%	6/15/44	5,860		5,876
4,10	SLM Private Education Loan Trust 2014-A	3.500%	11/15/44	4,100		4,177
4	SMART ABS Series 2016-2US Trust	2.050%	12/14/22	4,780		4,734
4,10	SMB Private Education Loan Trust 2016-A	2.700%	5/15/31	9,434		9,500
4,7,10	SMB Private Education Loan Trust 2016-B, 1M USD LIBOR + 1.500%	3.775%	2/17/32	8,746		8,928
4,7,10	SMB Private Education Loan Trust 2016-C, 1M USD LIBOR + 1.100%	3.425%	9/15/34	10,080		10,134
4,7,10	SMB Private Education Loan Trust 2017-A, 1M USD LIBOR + 0.900%	3.225%	9/15/34	13,547		13,566
4,10	SMB Private Education Loan Trust 2017-B	2.820%	10/15/35	19,880		20,044
4,10	SMB Private Education Loan Trust 2018-A	3.500%	2/15/36	51,170		52,822
4,10	SMB Private Education Loan Trust 2018-B	3.600%	1/15/37	21,900		22,751
4,10	SMB Private Education Loan Trust 2018-C	3.630%	11/15/35	24,940		25,819
4,10	SoFi Professional Loan Program 2016-B LLC	2.740%	10/25/32	6,430		6,457
4,10	SoFi Professional Loan Program 2016-C LLC	2.360%	12/27/32	6,290		6,267
4,10	SoFi Professional Loan Program 2016-D LLC	2.340%	4/25/33	5,324		5,303
4,7,10	SoFi Professional Loan Program 2016-D LLC, 1M USD LIBOR + 0.950%	3.216%	1/25/39	1,975		1,982
4,10	SoFi Professional Loan Program 2017-A LLC	2.400%	3/26/40	2,112		2,106
4,10	SoFi Professional Loan Program 2017-B LLC	2.740%	5/25/40	14,150		14,284
4,7,10	SoFi Professional Loan Program 2017-C LLC, 1M USD LIBOR + 0.600%	2.866%	7/25/40	1,187		1,188
4,10	SoFi Professional Loan Program 2017-D LLC	2.650%	9/25/40	7,540		7,577
4,10	SoFi Professional Loan Program 2017-E LLC	1.860%	11/26/40	15,792		15,741
4,10	SoFi Professional Loan Program 2017-E LLC	2.720%	11/26/40	9,940		9,980
4,10	SoFi Professional Loan Program 2017-F LLC	2.050%	1/25/41	12,493		12,460
4,10	SoFi Professional Loan Program 2017-F LLC	2.840%	1/25/41	12,320		12,431
4,10	SoFi Professional Loan Program 2018-A LLC	2.390%	2/25/42	18,560		18,556
4,10	SoFi Professional Loan Program 2018-A LLC	2.950%	2/25/42	15,490		15,691
4,10	SoFi Professional Loan Program 2018-B LLC	3.340%	8/25/47	27,178		27,930
4,10	SoFi Professional Loan Program 2018-C LLC	3.590%	1/25/48	43,720		45,661
4,10	SoFi Professional Loan Program 2018-D LLC	3.600%	2/25/48	41,350		43,013
4,10	SoFi Professional Loan Program 2019-B LLC	3.090%	8/17/48	16,050		16,330
4,10	Stack Infrastructure Issuer LLC 2019-1A	4.540%	2/25/44	12,760		13,264
4	Synchrony Card Issuance Trust 2018-A1	3.380%	9/15/24	34,590		35,474
4	Synchrony Card Issuance Trust 2019-2A	2.340%	6/15/25	25,420		25,444
4	Synchrony Credit Card Master Note Trust 2015-4	2.380%	9/15/23	34,390		34,423
4	Synchrony Credit Card Master Note Trust 2016-2	2.950%	5/15/24	10,715		10,747
4	Synchrony Credit Card Master Note Trust 2016-3	1.580%	9/15/22	16,935		16,920
4	Synchrony Credit Card Master Note Trust 2016-3	1.910%	9/15/22	29,333		29,308
4	Synchrony Credit Card Master Note Trust 2017-2	2.620%	10/15/25	31,940		32,379
4	Synchrony Credit Card Master Note Trust 2017-2	2.820%	10/15/25	9,688		9,776
4	Synchrony Credit Card Master Note Trust 2017-2	3.010%	10/15/25	13,000		13,119
4,10	Taco Bell Funding LLC 2016-1A	4.377%	5/25/46	8,383		8,504
4,10	Taco Bell Funding LLC 2016-1A	4.970%	5/25/46	12,010		12,625

14

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4,10	Taco Bell Funding LLC 2018-1	4.940%	11/25/48	10,418		11,126
4,10	Tesla Auto Lease Trust 2018-A	2.320%	12/20/19	7,406		7,403
4,10	Tesla Auto Lease Trust 2018-A	2.750%	2/20/20	1,480		1,480
4,10	Tesla Auto Lease Trust 2018-A	2.970%	4/20/20	1,180		1,181
4,10	Tesla Auto Lease Trust 2018-A	3.300%	5/20/20	1,330		1,334
4,10	Tesla Auto Lease Trust 2018-B	3.710%	8/20/21	95,688		97,058
4,10	Tesla Auto Lease Trust 2018-B	4.120%	10/20/21	10,750		11,013
4,10	Tesla Auto Lease Trust 2018-B	4.360%	10/20/21	6,850		6,980
4,10	Textainer Marine Containers Limited 2019-A	3.960%	4/20/44	10,898		11,239
4,10	Tidewater Auto Receivables Trust 2018-AA	3.120%	7/15/22	8,897		8,915
4,10	Tidewater Auto Receivables Trust 2018-AA	3.450%	11/15/24	4,346		4,378
4,10	Tidewater Auto Receivables Trust 2018-AA	3.840%	11/15/24	4,873		4,961
4,10	Tidewater Auto Receivables Trust 2018-AA	4.300%	11/15/24	1,449		1,490
4,10	TMSQ 2014-1500 Mortgage Trust	3.680%	10/10/36	24,260		25,608
4	Toyota Auto Receivables 2017-D Owner Trust	2.120%	2/15/23	2,790		2,789
4	Toyota Auto Receivables 2018-A Owner Trust	2.350%	5/16/22	82,810		82,928
4	Toyota Auto Receivables 2018-A Owner Trust	2.520%	5/15/23	7,287		7,350
4	Toyota Auto Receivables 2018-B Owner Trust	3.110%	11/15/23	13,640		14,010
4	Toyota Auto Receivables 2018-C Owner Trust	3.020%	12/15/22	23,380		23,726
4	Toyota Auto Receivables 2018-C Owner Trust	3.130%	2/15/24	10,160		10,383
4	Toyota Auto Receivables 2019-A Owner Trust	3.000%	5/15/24	4,880		4,989
4,10	Trafigura Securitisation Finance plc 2017-1A	2.470%	12/15/20	47,250		46,890
4,10	Trafigura Securitisation Finance plc 2018-1A	3.730%	3/15/22	52,600		52,869
4,10	Trillium Credit Card Trust II 2019-2A	3.038%	1/26/24	41,150		41,653
4,10	Trinity Rail Leasing LP 2018-1A	4.620%	6/17/48	21,060		22,259
4,10	Trip Rail Master Funding LLC 2017-1A	2.709%	8/15/47	2,690		2,681
4,10	Triton Container Finance LLC 2018-A2	4.190%	6/22/43	28,899		29,643
4	UBS Commercial Mortgage Trust 2012-C1	4.171%	5/10/45	1,250		1,299
4	UBS Commercial Mortgage Trust 2017-C7	3.679%	12/15/50	13,995		14,952
4	UBS Commercial Mortgage Trust 2019-C16	3.460%	4/15/52	5,849		6,174
4,10	UBS-BAMLL Trust 2012-WRM	3.663%	6/10/30	25,038		25,705
4	UBS-Barclays Commercial Mortgage Trust 2012-C4	2.850%	12/10/45	9,054		9,200
4	UBS-Barclays Commercial Mortgage Trust 2013-C6	3.244%	4/10/46	7,560		7,799
4	UBS-Barclays Commercial Mortgage Trust 2013-C6	3.469%	4/10/46	2,304		2,383
§,4	USAA Auto Owner Trust	2.160%	7/17/23	12,220		12,220
4,10	Vantage Data Centers Issuer, LLC 2018-1A	4.072%	2/16/43	15,492		15,861
4,10	Verizon Owner Trust 2016-2A	1.680%	5/20/21	12,680		12,662
4,10	Verizon Owner Trust 2017-2A	1.920%	12/20/21	36,745		36,685
4,10	Verizon Owner Trust 2017-3	2.060%	4/20/22	15,165		15,137
4,10	Verizon Owner Trust 2017-3	2.380%	4/20/22	17,380		17,363
4,10	Verizon Owner Trust 2017-3	2.530%	4/20/22	18,650		18,675
4,10	Verizon Owner Trust 2018-1	2.820%	9/20/22	65,060		65,478
4,10	Verizon Owner Trust 2018-1	3.050%	9/20/22	23,660		23,889
4	Verizon Owner Trust 2018-A	3.230%	4/20/23	13,320		13,549
4	Verizon Owner Trust 2019-A	2.930%	9/20/23	23,130		23,493
4,10	VNDO 2012-6AVE Mortgage Trust	2.996%	11/15/30	13,561		13,831
4,10	VNDO 2013-PENN Mortgage Trust	3.808%	12/13/29	11,130		11,304
4,10	VNDO 2013-PENN Mortgage Trust	3.947%	12/13/29	3,270		3,318
4,10	VNDO 2013-PENN Mortgage Trust	3.947%	12/13/29	2,450		2,480
4	Volkswagen Auto Loan Enhanced Trust 2018-1	3.020%	11/21/22	15,280		15,470
4	Volkswagen Auto Loan Enhanced Trust 2018-1	3.150%	7/22/24	6,970		7,124
4	Volkswagen Auto Loan Enhanced Trust 2018-2	3.330%	2/20/25	8,910		9,192
4	WaMu Mortgage Pass-Through Certificates Series 2002-AR18 Trust	4.742%	1/25/33	103		101
4	WaMu Mortgage Pass-Through Certificates Series 2003-AR7 Trust	4.398%	8/25/33	448		445
4	WaMu Mortgage Pass-Through Certificates Series 2003-AR9 Trust	4.369%	9/25/33	742		743
4	Wells Fargo Commercial Mortgage Trust 2012-LC5	2.918%	10/15/45	29,323		29,834
4	Wells Fargo Commercial Mortgage Trust 2012-LC5	3.539%	10/15/45	1,650		1,700
4	Wells Fargo Commercial Mortgage Trust 2013-LC12	3.928%	7/15/46	6,782		7,018
4	Wells Fargo Commercial Mortgage Trust 2013-LC12	4.218%	7/15/46	35,262		37,641
4	Wells Fargo Commercial Mortgage Trust 2013-LC12	4.285%	7/15/46	4,906		5,203
4	Wells Fargo Commercial Mortgage Trust 2014-LC16	3.817%	8/15/50	43,100		45,743

15

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Wells Fargo Commercial Mortgage Trust 2014-LC16	4.020%	8/15/50	7,100		7,465
4	Wells Fargo Commercial Mortgage Trust 2014-LC16	4.322%	8/15/50	12,250		12,904
4	Wells Fargo Commercial Mortgage Trust 2014-LC16	4.458%	8/15/50	6,830		6,867
4	Wells Fargo Commercial Mortgage Trust 2014-LC18	3.405%	12/15/47	29,862		31,236
4	Wells Fargo Commercial Mortgage Trust 2015-C26	3.166%	2/15/48	29,810		30,854
4	Wells Fargo Commercial Mortgage Trust 2015-C27	3.190%	2/15/48	33,330		34,419
4	Wells Fargo Commercial Mortgage Trust 2015-C27	3.451%	2/15/48	49,460		51,931
4	Wells Fargo Commercial Mortgage Trust 2015-C29	3.637%	6/15/48	54,193		57,551
4	Wells Fargo Commercial Mortgage Trust 2015-C29	4.224%	6/15/48	12,420		13,012
4	Wells Fargo Commercial Mortgage Trust 2015-C30	3.411%	9/15/58	22,214		23,183
4	Wells Fargo Commercial Mortgage Trust 2015-C30	3.664%	9/15/58	20,610		21,932
4	Wells Fargo Commercial Mortgage Trust 2015-C30	4.067%	9/15/58	17,222		18,444
4	Wells Fargo Commercial Mortgage Trust 2015-C30	4.497%	9/15/58	11,490		12,078
4	Wells Fargo Commercial Mortgage Trust 2015-LC22	3.839%	9/15/58	23,212		24,930
4	Wells Fargo Commercial Mortgage Trust 2015-LC22	4.207%	9/15/58	8,550		9,207
4	Wells Fargo Commercial Mortgage Trust 2015-LC22	4.543%	9/15/58	14,300		15,047
4	Wells Fargo Commercial Mortgage Trust 2015-SG1	3.789%	9/15/48	33,065		35,291
4	Wells Fargo Commercial Mortgage Trust 2016-BNK1	2.652%	8/15/49	23,085		23,158
4	Wells Fargo Commercial Mortgage Trust 2016-C32	3.560%	1/15/59	34,455		36,493
4	Wells Fargo Commercial Mortgage Trust 2016-C37	3.525%	12/15/49	9,590		10,118
4	Wells Fargo Commercial Mortgage Trust 2016-C37	3.794%	12/15/49	11,967		12,899
4	Wells Fargo Commercial Mortgage Trust 2017-C38	3.453%	7/15/50	15,680		16,533
4	Wells Fargo Commercial Mortgage Trust 2017-C39	3.157%	9/15/50	5,750		5,966
4	Wells Fargo Commercial Mortgage Trust 2017-C39	3.418%	9/15/50	65,280		68,867
4	Wells Fargo Commercial Mortgage Trust 2017-C40	3.581%	10/15/50	45,250		48,165
4	Wells Fargo Commercial Mortgage Trust 2017-C41	3.472%	11/15/50	39,807		42,113
4	Wells Fargo Commercial Mortgage Trust 2017-C42	3.589%	12/15/50	17,855		18,996
4	Wells Fargo Commercial Mortgage Trust 2017-RC1	3.631%	1/15/60	7,660		8,161
4	Wells Fargo Commercial Mortgage Trust 2018-C43	4.012%	3/15/51	55,010		60,279
4	Wells Fargo Commercial Mortgage Trust 2018-C43	4.514%	3/15/51	5,973		6,317
4	Wells Fargo Commercial Mortgage Trust 2018-C46	4.152%	8/15/51	28,060		31,103
4	Wells Fargo Commercial Mortgage Trust 2018-C47	4.365%	9/15/61	22,110		24,514
4	Wells Fargo Commercial Mortgage Trust 2018-C47	4.442%	9/15/61	32,480		36,766
4	Wells Fargo Commercial Mortgage Trust 2018-C48	4.245%	1/15/52	6,553		7,214
4	Wells Fargo Commercial Mortgage Trust 2019-C49	3.933%	3/15/52	7,894		8,571
4	Wells Fargo Commercial Mortgage Trust 2019-C49	4.023%	3/15/52	18,370		20,256
4	Wells Fargo Commercial Mortgage Trust 2019-C50	3.635%	5/15/52	10,300		10,990
4	Wells Fargo Mortgage Backed Securities 2006-AR14 Trust	4.756%	10/25/36	5,769		5,604
4,10	Wendys Funding LLC 2015-1A	4.497%	6/15/45	6,247		6,465
4,10	Wendys Funding LLC 2018-1	3.573%	3/15/48	6,393		6,429
4,10	Wendys Funding LLC 2018-1	3.884%	3/15/48	9,614		9,698
4,10	WFLD 2014-MONT Mortgage Trust	3.755%	8/10/31	35,485		37,554
4,10	WFRBS Commercial Mortgage Trust 2011-C3	4.375%	3/15/44	11,719		12,052
4	WFRBS Commercial Mortgage Trust 2012-C10	2.875%	12/15/45	10,955		11,140
4	WFRBS Commercial Mortgage Trust 2012-C7	3.431%	6/15/45	11,800		12,128
4	WFRBS Commercial Mortgage Trust 2012-C7	4.090%	6/15/45	5,056		5,228
4	WFRBS Commercial Mortgage Trust 2012-C8	3.001%	8/15/45	4,491		4,576
4	WFRBS Commercial Mortgage Trust 2012-C9	2.870%	11/15/45	21,367		21,702
4	WFRBS Commercial Mortgage Trust 2012-C9	3.388%	11/15/45	2,860		2,936
4	WFRBS Commercial Mortgage Trust 2013-C13	3.345%	5/15/45	2,230		2,298
4	WFRBS Commercial Mortgage Trust 2013-C15	3.720%	8/15/46	19,073		19,581
4	WFRBS Commercial Mortgage Trust 2013-C15	4.153%	8/15/46	14,980		15,937
4	WFRBS Commercial Mortgage Trust 2013-C16	4.415%	9/15/46	14,650		15,797
4	WFRBS Commercial Mortgage Trust 2013-C17	3.558%	12/15/46	3,048		3,125
4	WFRBS Commercial Mortgage Trust 2013-C17	4.023%	12/15/46	9,770		10,399
4	WFRBS Commercial Mortgage Trust 2013-C18	3.676%	12/15/46	5,984		6,163
4	WFRBS Commercial Mortgage Trust 2013-C18	4.162%	12/15/46	27,830		29,833
4	WFRBS Commercial Mortgage Trust 2013-C18	4.694%	12/15/46	5,775		6,287
4	WFRBS Commercial Mortgage Trust 2014-C19	3.829%	3/15/47	30,300		32,002
4	WFRBS Commercial Mortgage Trust 2014-C19	4.101%	3/15/47	23,553		25,253
4	WFRBS Commercial Mortgage Trust 2014-C20	3.995%	5/15/47	40,481		43,285
4	WFRBS Commercial Mortgage Trust 2014-C20	4.378%	5/15/47	11,110		11,666
4	WFRBS Commercial Mortgage Trust 2014-C20	4.513%	5/15/47	4,500		4,565

16

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	WFRBS Commercial Mortgage Trust 2014-C21	3.410%	8/15/47	1,665		1,736
4	WFRBS Commercial Mortgage Trust 2014-C21	3.678%	8/15/47	45,230		47,802
4	WFRBS Commercial Mortgage Trust 2014-C21	3.891%	8/15/47	7,130		7,533
4	WFRBS Commercial Mortgage Trust 2014-C21	4.234%	8/15/47	12,290		12,758
4	WFRBS Commercial Mortgage Trust 2014-C23	3.650%	10/15/57	13,000		13,698
4	WFRBS Commercial Mortgage Trust 2014-C23	3.917%	10/15/57	10,655		11,391
4	WFRBS Commercial Mortgage Trust 2014-C24	3.607%	11/15/47	24,615		25,966
4	WFRBS Commercial Mortgage Trust 2014-LC14	3.766%	3/15/47	2,690		2,838
4	WFRBS Commercial Mortgage Trust 2014-LC14	4.045%	3/15/47	46,983		50,190
4	World Omni Auto Receivables Trust 2016-B	1.300%	2/15/22	4,997		4,977
4	World Omni Auto Receivables Trust 2018-A	2.730%	2/15/24	16,040		16,197
4	World Omni Auto Receivables Trust 2018-A	2.890%	4/15/25	8,670		8,779
4	World Omni Auto Receivables Trust 2018-D	3.440%	12/16/24	3,660		3,806
4	World Omni Auto Receivables Trust 2019-A	3.220%	6/16/25	6,060		6,256
4	World Omni Auto Receivables Trust 2019-B	2.860%	6/16/25	5,210		5,326
4	World Omni Automobile Lease Securitization Trust 2018-A	2.830%	7/15/21	21,500		21,595
4	World Omni Automobile Lease Securitization Trust 2018-B	3.190%	12/15/21	16,570		16,780
4	World Omni Automobile Lease Securitization Trust 2019-B	3.240%	7/15/24	5,750		5,809
4,10	World Omni Select Auto Trust A Series 2018-1 A3	3.460%	3/15/23	11,640		11,802
Total Asset-Backed/Commercial Mortgage-Backed Securities (Cost $14,494,115)						14,822,109
Corporate Bonds (59.6%)
Finance (26.1%)
	Banking (23.0%)
10	ABN AMRO Bank NV	3.400%	8/27/21	58,200		59,275
	Ally Financial Inc.	3.875%	5/21/24	9,710		10,013
	American Express Co.	2.200%	10/30/20	158,870		158,466
	American Express Co.	3.700%	11/5/21	72,400		74,512
	American Express Co.	3.700%	8/3/23	128,195		133,975
	American Express Co.	2.500%	7/30/24	37,490		37,364
	American Express Credit Corp.	2.250%	5/5/21	10,413		10,409
10	ANZ New Zealand Int’l Ltd.	2.200%	7/17/20	29,275		29,210
	Australia & New Zealand Banking Group Ltd.	2.625%	11/9/22	37,465		37,820
7,11	Australia & New Zealand Banking Group Ltd., 3M Australian Bank Bill Rate + 2.700%	4.260%	5/17/26	8,750		6,151
10	Banco Santander	2.500%	12/15/20	82,290		82,162
	Banco Santander SA	2.706%	6/27/24	48,400		48,232
	Bank of America Corp.	2.625%	10/19/20	43,700		43,849
	Bank of America Corp.	2.625%	4/19/21	12,146		12,191
4	Bank of America Corp.	2.369%	7/21/21	175,765		175,586
4	Bank of America Corp.	2.328%	10/1/21	162,270		161,994
4	Bank of America Corp.	2.738%	1/23/22	34,000		34,124
4	Bank of America Corp.	3.124%	1/20/23	44,075		44,765
	Bank of America Corp.	3.004%	12/20/23	112,818		114,287
	Bank of America Corp.	4.125%	1/22/24	48,795		52,040
4	Bank of America Corp.	3.550%	3/5/24	120,280		124,098
4	Bank of America Corp.	3.864%	7/23/24	13,200		13,815
	Bank of Montreal	2.900%	3/26/22	121,430		122,972
	Bank of Montreal	3.300%	2/5/24	89,350		92,333
	Bank of New York Mellon Corp.	2.050%	5/3/21	11,000		10,961
4	Bank of New York Mellon Corp.	2.661%	5/16/23	4,850		4,883
	Bank of New York Mellon Corp.	3.450%	8/11/23	31,390		32,623
	Bank of Nova Scotia	2.228%	12/11/19	114,005		113,988
	Bank of Nova Scotia	2.500%	1/8/21	36,955		37,026
	Bank of Nova Scotia	4.375%	1/13/21	7,700		7,927
	Bank of Nova Scotia	3.400%	2/11/24	23,045		23,955
10	Banque Federative du Credit Mutuel SA	2.200%	7/20/20	7,165		7,154
10	Banque Federative du Credit Mutuel SA	2.500%	4/13/21	45,495		45,458
12	Banque Federative du Credit Mutuel SA	1.375%	12/20/21	17,600		21,543
10	Banque Federative du Credit Mutuel SA	2.700%	7/20/22	58,855		59,153

17

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
10	Banque Federative du Credit Mutuel SA	3.750%	7/20/23	60,505		63,060
12	Barclays Bank plc	10.000%	5/21/21	47,365		65,976
4	Barclays plc	3.932%	5/7/25	48,525		49,006
	BB&T Corp.	2.050%	5/10/21	14,000		13,906
	BB&T Corp.	3.950%	3/22/22	4,300		4,448
	BB&T Corp.	3.050%	6/20/22	48,580		49,411
	BB&T Corp.	3.750%	12/6/23	33,980		35,881
11	BPCE SA	3.500%	4/24/20	7,950		5,513
7,11	BPCE SA, 3M Australian Bank Bill Rate + 1.300%	2.388%	4/24/20	21,310		14,657
	Branch Banking & Trust Co.	2.250%	6/1/20	86,765		86,693
	Branch Banking & Trust Co.	2.625%	1/15/22	124,364		124,965
	Canadian Imperial Bank of Commerce	2.550%	6/16/22	29,145		29,320
4	Canadian Imperial Bank of Commerce	2.606%	7/22/23	38,800		38,860
	Canadian Imperial Bank of Commerce	3.500%	9/13/23	88,280		91,968
	Canadian Imperial Bank of Commerce	3.100%	4/2/24	14,280		14,502
	Capital One Financial Corp.	3.050%	3/9/22	26,645		26,967
	Capital One NA	2.250%	9/13/21	15,602		15,513
	Citibank NA	2.125%	10/20/20	130,030		129,826
	Citibank NA	2.850%	2/12/21	262,150		264,541
	Citigroup Inc.	2.650%	10/26/20	68,589		68,778
	Citigroup Inc.	2.700%	3/30/21	13,175		13,240
	Citigroup Inc.	2.750%	4/25/22	63,390		63,879
12	Citigroup Inc.	2.750%	1/24/24	7,985		10,226
4	Citigroup Inc.	4.044%	6/1/24	43,705		45,882
	Citizens Bank NA	3.250%	2/14/22	38,875		39,537
	Comerica Inc.	3.700%	7/31/23	36,900		38,429
	Commonwealth Bank of Australia	2.400%	11/2/20	18,055		18,066
10	Commonwealth Bank of Australia	2.750%	3/10/22	36,895		37,273
10	Commonwealth Bank of Australia	2.500%	9/18/22	76,668		76,962
10	Commonwealth Bank of Australia	3.450%	3/16/23	54,409		56,355
10	Commonwealth Bank of Australia	3.350%	6/4/24	34,000		35,384
7,11	Commonwealth Bank of Australia, 3M Australian Bank Bill Rate + 2.650%	4.050%	6/3/26	3,200		2,247
	Cooperatieve Rabobank UA	2.750%	1/10/23	61,060		61,716
10	Cooperatieve Rabobank UA	3.875%	9/26/23	61,320		64,469
11	Cooperatieve Rabobank UA	5.000%	7/2/25	10,800		7,590
7,11	Cooperatieve Rabobank UA, 3M Australian Bank Bill Rate + 2.500%	3.677%	7/2/25	23,650		16,389
4,10	Credit Suisse Group AG	4.207%	6/12/24	63,000		65,723
	Credit Suisse Group Funding Guernsey Ltd.	3.125%	12/10/20	33,090		33,326
10	Danske Bank A/S	2.750%	9/17/20	23,273		23,196
13	Danske Bank A/S	0.500%	5/6/21	32,908		36,283
10	Danske Bank A/S	2.000%	9/8/21	19,400		19,086
10	Danske Bank A/S	3.875%	9/12/23	34,000		34,966
	Deutsche Bank AG	3.150%	1/22/21	57,440		57,033
10	Federation des Caisses Desjardins du Quebec	2.250%	10/30/20	58,625		58,511
	Fifth Third Bancorp	3.650%	1/25/24	29,100		30,431
	Fifth Third Bank	2.200%	10/30/20	46,125		46,082
	Fifth Third Bank	2.250%	6/14/21	28,181		28,123
	Fifth Third Bank	2.875%	10/1/21	17,095		17,247
	First Republic Bank	2.500%	6/6/22	94,470		94,167
	Goldman Sachs Group Inc.	2.300%	12/13/19	159,650		159,610
	Goldman Sachs Group Inc.	2.750%	9/15/20	88,455		88,763
	Goldman Sachs Group Inc.	2.600%	12/27/20	256,295		256,262
	Goldman Sachs Group Inc.	2.875%	2/25/21	158,874		159,853
	Goldman Sachs Group Inc.	2.625%	4/25/21	98,334		98,458
	Goldman Sachs Group Inc.	2.350%	11/15/21	900		896
	Goldman Sachs Group Inc.	5.750%	1/24/22	89,948		96,431
	Goldman Sachs Group Inc.	3.000%	4/26/22	60,810		61,260
4	Goldman Sachs Group Inc.	2.876%	10/31/22	34,318		34,550
4	Goldman Sachs Group Inc.	2.908%	6/5/23	48,238		48,591
4	Goldman Sachs Group Inc.	2.905%	7/24/23	5,100		5,142
	Goldman Sachs Group Inc.	3.625%	2/20/24	62,105		64,448
	Goldman Sachs Group Inc.	4.000%	3/3/24	14,800		15,623

18

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Goldman Sachs Group Inc.	3.850%	7/8/24	19,400		20,346
7,11	Goldman Sachs Group Inc., 3M Australian Bank Bill Rate + 1.200%	2.631%	8/26/20	14,870		10,230
7,11	Goldman Sachs Group Inc., 3M Australian Bank Bill Rate + 1.370%	2.736%	9/8/21	19,280		13,346
	HSBC Bank USA NA	4.875%	8/24/20	23,750		24,375
	HSBC Holdings plc	2.950%	5/25/21	109,905		110,623
	HSBC Holdings plc	2.650%	1/5/22	75,105		75,224
	HSBC Holdings plc	4.000%	3/30/22	9,700		10,041
4	HSBC Holdings plc	3.262%	3/13/23	111,540		113,245
	HSBC Holdings plc	3.600%	5/25/23	33,195		34,414
4	HSBC Holdings plc	3.033%	11/22/23	96,585		97,526
4	HSBC Holdings plc	3.950%	5/18/24	56,352		58,606
4	HSBC Holdings plc	3.803%	3/11/25	116,630		120,467
	Huntington National Bank	2.375%	3/10/20	54,920		54,891
	Huntington National Bank	2.875%	8/20/20	33,581		33,727
	Huntington National Bank	2.500%	8/7/22	55,115		55,286
	Huntington National Bank	3.550%	10/6/23	42,085		43,917
10	ING Bank NV	2.700%	8/17/20	3,907		3,924
13	Intesa Sanpaolo SPA	1.125%	3/4/22	7,700		8,721
	JPMorgan Chase & Co.	2.250%	1/23/20	14,238		14,232
	JPMorgan Chase & Co.	2.750%	6/23/20	118,678		119,068
	JPMorgan Chase & Co.	4.250%	10/15/20	25,589		26,160
	JPMorgan Chase & Co.	2.550%	10/29/20	181,838		182,165
	JPMorgan Chase & Co.	2.550%	3/1/21	41,825		41,945
	JPMorgan Chase & Co.	2.295%	8/15/21	5,427		5,417
	JPMorgan Chase & Co.	4.500%	1/24/22	7,302		7,666
4	JPMorgan Chase & Co.	3.514%	6/18/22	130,215		132,750
	JPMorgan Chase & Co.	3.250%	9/23/22	13,000		13,342
	JPMorgan Chase & Co.	2.972%	1/15/23	106,262		107,549
4	JPMorgan Chase & Co.	2.776%	4/25/23	96,455		97,238
	JPMorgan Chase & Co.	2.700%	5/18/23	42,765		43,177
4	JPMorgan Chase & Co.	3.559%	4/23/24	86,030		89,056
4	JPMorgan Chase & Co.	4.023%	12/5/24	76,460		80,774
	KeyBank NA	2.500%	11/22/21	5,765		5,783
	KeyBank NA	2.300%	9/14/22	14,580		14,538
	Lloyds Banking Group plc	4.050%	8/16/23	53,550		55,607
4	Lloyds Banking Group plc	2.907%	11/7/23	78,040		77,616
	Macquarie Bank Ltd.	6.625%	4/7/21	6,530		6,932
4,10	Macquarie Group Ltd.	3.189%	11/28/23	6,826		6,918
4	Macquarie Group Ltd.	3.189%	11/28/23	17,040		17,269
	Manufacturers & Traders Trust Co.	2.050%	8/17/20	34,335		34,250
	Manufacturers & Traders Trust Co.	2.500%	5/18/22	14,920		14,965
7	Manufacturers & Traders Trust Co., 3M USD LIBOR + 0.640%	3.160%	12/1/21	9,755		9,728
	Mitsubishi UFJ Financial Group Inc.	2.950%	3/1/21	38,663		38,908
	Mitsubishi UFJ Financial Group Inc.	3.535%	7/26/21	19,965		20,344
	Mitsubishi UFJ Financial Group Inc.	2.190%	9/13/21	10,400		10,324
	Mitsubishi UFJ Financial Group Inc.	3.218%	3/7/22	114,195		116,123
	Mitsubishi UFJ Financial Group Inc.	2.623%	7/18/22	90,000		90,156
	Mitsubishi UFJ Financial Group Inc.	2.665%	7/25/22	160,733		161,252
	Mitsubishi UFJ Financial Group Inc.	3.761%	7/26/23	194,065		202,223
	Mitsubishi UFJ Financial Group Inc.	3.407%	3/7/24	56,670		58,559
	Mitsubishi UFJ Financial Group Inc.	2.801%	7/18/24	46,000		46,231
10	Mitsubishi UFJ Trust & Banking Corp.	2.650%	10/19/20	30,625		30,716
	Mizuho Bank Ltd.	2.340%	12/4/19	185,675		185,736
10	Mizuho Bank Ltd.	2.950%	10/17/22	2,800		2,826
	Mizuho Financial Group Inc.	2.273%	9/13/21	15,995		15,924
	Mizuho Financial Group Inc.	2.953%	2/28/22	20,633		20,821
4	Mizuho Financial Group Inc.	2.721%	7/16/23	63,000		63,329
	Morgan Stanley	2.650%	1/27/20	45,913		45,965
	Morgan Stanley	2.800%	6/16/20	50,742		50,930
	Morgan Stanley	2.500%	4/21/21	14,000		14,029
	Morgan Stanley	5.500%	7/28/21	26,000		27,506

19

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Morgan Stanley	2.625%	11/17/21	214,379		215,086
	Morgan Stanley	2.750%	5/19/22	87,610		88,191
	Morgan Stanley	3.125%	1/23/23	155,676		158,500
	Morgan Stanley	3.750%	2/25/23	19,425		20,201
4	Morgan Stanley	2.720%	7/22/25	37,000		37,081
10	MUFG Bank Ltd.	2.300%	3/5/20	68,518		68,466
10	MUFG Bank Ltd.	2.750%	9/14/20	88,651		89,210
10	MUFG Bank Ltd.	2.850%	9/8/21	21,300		21,435
	MUFG Union Bank NA	3.150%	4/1/22	115,775		117,855
	National Bank of Canada	2.200%	11/2/20	151,645		151,442
4,10	Nationwide Building Society	3.766%	3/8/24	6,900		7,010
13	NIBC Bank NV	1.500%	1/31/22	7,850		8,987
12	NIBC Bank NV	3.125%	11/15/23	10,900		13,703
4	Oversea-Chinese Banking Corp. Ltd.	4.000%	10/15/24	19,600		19,648
	PNC Bank NA	2.300%	6/1/20	14,636		14,626
	PNC Bank NA	2.600%	7/21/20	43,010		43,100
	PNC Bank NA	2.450%	11/5/20	15,636		15,652
	PNC Bank NA	2.150%	4/29/21	14,504		14,460
	PNC Bank NA	2.550%	12/9/21	37,330		37,456
	PNC Bank NA	2.625%	2/17/22	91,150		91,650
	PNC Bank NA	2.700%	11/1/22	36,000		36,139
	PNC Bank NA	3.800%	7/25/23	15,250		15,931
	PNC Financial Services Group Inc.	2.854%	11/9/22	12,000		12,153
	PNC Funding Corp.	5.125%	2/8/20	7,230		7,332
	Regions Financial Corp.	2.750%	8/14/22	10,605		10,656
	Royal Bank of Canada	2.150%	10/26/20	150,358		149,887
	Royal Bank of Canada	3.700%	10/5/23	36,705		38,482
	Royal Bank of Canada	2.550%	7/16/24	25,250		25,259
4	Royal Bank of Scotland Group plc	4.269%	3/22/25	38,800		39,745
	Santander Holdings USA Inc.	3.700%	3/28/22	78,880		80,578
	Santander Holdings USA Inc.	3.400%	1/18/23	58,410		59,168
4	Santander UK Group Holdings plc	3.373%	1/5/24	48,580		48,853
4	Santander UK Group Holdings plc	4.796%	11/15/24	25,877		27,388
	Santander UK plc	3.750%	11/15/21	43,750		44,899
10	Santander UK plc	5.000%	11/7/23	12,306		12,930
	Santander UK plc	4.000%	3/13/24	31,300		32,815
	Sumitomo Mitsui Banking Corp.	2.450%	10/20/20	6,400		6,401
	Sumitomo Mitsui Financial Group Inc.	2.442%	10/19/21	114,717		114,577
	Sumitomo Mitsui Financial Group Inc.	2.784%	7/12/22	66,325		66,872
	Sumitomo Mitsui Financial Group Inc.	2.778%	10/18/22	23,480		23,657
	Sumitomo Mitsui Financial Group Inc.	3.102%	1/17/23	21,837		22,297
	Sumitomo Mitsui Financial Group Inc.	3.748%	7/19/23	43,172		45,061
	Sumitomo Mitsui Financial Group Inc.	2.696%	7/16/24	96,500		96,339
7,11	Sumitomo Mitsui Financial Group Inc., 3M Australian Bank Bill Rate + 1.270%	2.475%	3/29/22	41,051		28,266
4	SunTrust Bank	3.525%	10/26/21	48,600		49,300
	SunTrust Bank	2.800%	5/17/22	155,900		157,442
	SunTrust Bank	2.450%	8/1/22	79,275		79,305
	SunTrust Bank	3.200%	4/1/24	105,950		109,084
4	SunTrust Bank	3.689%	8/2/24	27,870		28,999
	SunTrust Banks Inc.	2.700%	1/27/22	46,750		46,980
	Svenska Handelsbanken AB	2.450%	3/30/21	52,150		52,252
	Svenska Handelsbanken AB	1.875%	9/7/21	35,465		35,073
	Svenska Handelsbanken AB	3.900%	11/20/23	43,175		45,728
12	Swedbank AB	1.250%	12/29/21	19,410		23,635
12	Swedbank AB	1.625%	12/28/22	38,080		46,825
	Synchrony Bank	3.000%	6/15/22	28,060		28,226
	Toronto-Dominion Bank	3.150%	9/17/20	62,755		63,347
	Toronto-Dominion Bank	3.250%	6/11/21	175,910		178,860
	Toronto-Dominion Bank	3.500%	7/19/23	117,890		123,164
10	UBS AG	2.450%	12/1/20	171,865		172,307
10	UBS Group Funding Jersey Ltd.	3.000%	4/15/21	35,067		35,358
10	UBS Group Funding Jersey Ltd.	2.650%	2/1/22	43,320		43,443
10	UBS Group Funding Switzerland AG	3.491%	5/23/23	20,975		21,424

20

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	United Overseas Bank Ltd.	3.750%	9/19/24	11,360		11,371
	US Bancorp	2.950%	7/15/22	29,300		29,796
	US Bancorp	3.375%	2/5/24	39,325		40,968
	US Bancorp	2.400%	7/30/24	42,000		41,876
	US Bank NA	2.050%	10/23/20	53,201		53,091
	US Bank NA	3.450%	11/16/21	43,025		44,118
	US Bank NA	2.650%	5/23/22	70,615		71,301
§,14	Washington Mutual Bank / Debt not acquired by JPMorgan	6.875%	6/15/11	21,983		2
	Wells Fargo & Co.	4.600%	4/1/21	7,000		7,253
	Wells Fargo & Co.	2.100%	7/26/21	41,205		41,010
	Wells Fargo & Co.	2.625%	7/22/22	119,600		120,180
	Wells Fargo & Co.	3.069%	1/24/23	19,500		19,785
	Wells Fargo & Co.	3.450%	2/13/23	44,500		45,532
	Wells Fargo & Co.	3.750%	1/24/24	85,675		89,836
7,11	Wells Fargo & Co., 3M Australian Bank Bill Rate + 1.320%	2.348%	7/27/21	23,240		16,091
	Wells Fargo Bank NA	2.600%	1/15/21	48,600		48,836
4	Wells Fargo Bank NA	3.325%	7/23/21	292,995		295,433
	Wells Fargo Bank NA	3.625%	10/22/21	146,400		150,208
	Wells Fargo Bank NA	3.550%	8/14/23	71,290		74,172
	Westpac Banking Corp.	2.100%	5/13/21	13,549		13,502
	Westpac Banking Corp.	2.000%	8/19/21	104,845		104,078
	Westpac Banking Corp.	2.750%	1/11/23	157,175		159,074
	Westpac Banking Corp.	3.300%	2/26/24	67,310		69,790
7,11	Westpac Banking Corp., 3M Australian Bank Bill Rate + 3.100%	4.466%	3/10/26	5,200		3,664
	Brokerage (0.3%)
	Ameriprise Financial Inc.	3.000%	3/22/22	37,000		37,577
13	Blackstone Property Partners Europe Holdings Sarl	1.400%	7/6/22	26,785		30,479
	Franklin Resources Inc.	2.800%	9/15/22	28,672		29,027
	Invesco Finance plc	3.125%	11/30/22	29,485		30,001
§,14	Lehman Brothers Holdings E-Capital Trust I	3.589%	8/19/65	9,410		1
	Stifel Financial Corp.	3.500%	12/1/20	14,595		14,731
	TD Ameritrade Holding Corp.	2.950%	4/1/22	8,809		8,948
	Finance Companies (0.1%)
11	GE Capital Australia Funding Pty Ltd.	5.250%	9/4/20	65,910		46,645
10	SMBC Aviation Capital Finance DAC	2.650%	7/15/21	14,555		14,487
	Insurance (1.7%)
	Aflac Inc.	3.625%	11/15/24	3,900		4,108
10	AIG Global Funding	2.150%	7/2/20	14,635		14,586
10	AIG Global Funding	2.700%	12/15/21	13,080		13,146
	Alleghany Corp.	5.625%	9/15/20	8,890		9,188
	Aspen Insurance Holdings Ltd.	6.000%	12/15/20	12,954		13,480
	AXIS Specialty Finance LLC	5.875%	6/1/20	1,508		1,550
	Berkshire Hathaway Finance Corp.	1.300%	8/15/19	36,720		36,708
	Berkshire Hathaway Inc.	2.100%	8/14/19	4,875		4,875
	Berkshire Hathaway Inc.	2.750%	3/15/23	46,376		47,275
	Centene Corp.	6.125%	2/15/24	12,088		12,662
	Chubb INA Holdings Inc.	2.300%	11/3/20	20,385		20,392
	Chubb INA Holdings Inc.	2.875%	11/3/22	22,700		23,041
	Chubb INA Holdings Inc.	2.700%	3/13/23	5,875		5,960
	Coventry Health Care Inc.	5.450%	6/15/21	8,200		8,565
10	Five Corners Funding Trust	4.419%	11/15/23	61,650		65,745
	Lincoln National Corp.	4.000%	9/1/23	5,000		5,268
	Marsh & McLennan Cos. Inc.	2.350%	3/6/20	19,410		19,401
	Marsh & McLennan Cos. Inc.	4.800%	7/15/21	7,925		8,220
10	MassMutual Global Funding II	2.750%	6/22/24	24,695		25,044
10	Metropolitan Life Global Funding I	1.550%	9/13/19	18,115		18,096
10	Metropolitan Life Global Funding I	3.450%	10/9/21	29,365		30,049
10	Metropolitan Life Global Funding I	3.600%	1/11/24	12,965		13,621
10	New York Life Global Funding	1.950%	2/11/20	19,470		19,439
10	Pricoa Global Funding I	2.550%	11/24/20	6,830		6,837

21

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
10	Pricoa Global Funding I	2.200%	6/3/21	11,590		11,550
10	Principal Life Global Funding II	2.204%	12/11/19	176,925		176,730
10	Principal Life Global Funding II	2.200%	4/8/20	28,665		28,650
	Progressive Corp.	3.750%	8/23/21	19,046		19,629
10	Protective Life Global Funding	2.700%	11/25/20	45,185		45,355
	Prudential Financial Inc.	4.500%	11/15/20	1,423		1,462
	Prudential Financial Inc.	4.500%	11/16/21	14,589		15,312
	Reinsurance Group of America Inc.	6.450%	11/15/19	21,183		21,424
	Reinsurance Group of America Inc.	5.000%	6/1/21	4,750		4,944
10	Reliance Standard Life Global Funding II	2.500%	1/15/20	28,115		28,119
10	Reliance Standard Life Global Funding II	2.375%	5/4/20	24,320		24,285
10	Reliance Standard Life Global Funding II	3.850%	9/19/23	36,230		37,528
10	Swiss Re Treasury US Corp.	2.875%	12/6/22	34,800		34,996
	Travelers Cos. Inc.	3.900%	11/1/20	4,300		4,390
	UnitedHealth Group Inc.	4.700%	2/15/21	12,750		13,137
	UnitedHealth Group Inc.	2.375%	10/15/22	82,000		82,279
	UnitedHealth Group Inc.	2.875%	3/15/23	9,700		9,881
	UnitedHealth Group Inc.	3.500%	2/15/24	34,350		36,004
	UnitedHealth Group Inc.	2.375%	8/15/24	26,000		25,954
	Real Estate Investment Trusts (1.0%)
	Alexandria Real Estate Equities Inc.	4.000%	1/15/24	26,190		27,742
	Alexandria Real Estate Equities Inc.	3.450%	4/30/25	45,115		46,485
	Brandywine Operating Partnership LP	4.100%	10/1/24	7,205		7,493
	Brixmor Operating Partnership LP	3.875%	8/15/22	10,845		11,175
	Brixmor Operating Partnership LP	3.650%	6/15/24	33,550		34,389
	Camden Property Trust	4.625%	6/15/21	650		672
	Camden Property Trust	2.950%	12/15/22	9,760		9,910
	Camden Property Trust	4.875%	6/15/23	3,025		3,271
	Camden Property Trust	4.250%	1/15/24	12,000		12,681
	Camden Property Trust	3.500%	9/15/24	1,785		1,857
	Digital Realty Trust LP	3.950%	7/1/22	44,160		45,832
	ERP Operating LP	4.750%	7/15/20	2,349		2,386
	Federal Realty Investment Trust	2.550%	1/15/21	14,551		14,578
	Federal Realty Investment Trust	3.000%	8/1/22	21,448		21,755
	Federal Realty Investment Trust	2.750%	6/1/23	2,800		2,825
13	GELF Bond Issuer I SA	1.750%	11/22/21	33,950		39,395
	HCP Inc.	4.000%	12/1/22	4,850		5,058
	HCP Inc.	4.250%	11/15/23	17,120		18,214
	HCP Inc.	4.200%	3/1/24	7,815		8,316
	HCP Inc.	3.400%	2/1/25	11,470		11,758
	Healthcare Trust of America Holdings LP	3.375%	7/15/21	4,500		4,558
	Healthcare Trust of America Holdings LP	2.950%	7/1/22	14,635		14,735
	Healthcare Trust of America Holdings LP	3.700%	4/15/23	13,139		13,447
	Highwoods Realty LP	3.200%	6/15/21	5,750		5,796
11	Lendlease Finance Ltd.	6.000%	5/13/20	9,710		6,848
	Liberty Property LP	4.750%	10/1/20	10,940		11,167
	Realty Income Corp.	5.750%	1/15/21	3,905		4,059
	Realty Income Corp.	3.250%	10/15/22	63,430		64,999
	Realty Income Corp.	3.875%	4/15/25	19,295		20,556
	Simon Property Group LP	4.375%	3/1/21	25,769		26,461
	Simon Property Group LP	4.125%	12/1/21	20,000		20,704
	Simon Property Group LP	2.350%	1/30/22	12,290		12,281
	Simon Property Group LP	3.375%	3/15/22	4,000		4,105
	Welltower Inc.	3.950%	9/1/23	29,145		30,610
	Welltower Inc.	3.625%	3/15/24	19,435		20,217
						15,773,045
Industrial (29.0%)
	Basic Industry (1.0%)
10	Air Liquide Finance SA	1.375%	9/27/19	44,940		44,886
10	Air Liquide Finance SA	1.750%	9/27/21	110,530		109,026
10	Air Liquide Finance SA	2.250%	9/27/23	8,407		8,346
	Airgas Inc.	2.375%	2/15/20	14,825		14,824
	BHP Billiton Finance USA Ltd.	2.875%	2/24/22	6,846		6,933

22

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	BHP Billiton Finance USA Ltd.	3.850%	9/30/23	15,315		16,188
10	Chevron Phillips Chemical Co. LLC / Chevron Phillips Chemical Co. LP	3.300%	5/1/23	60,938		62,107
	Dow Chemical Co.	3.000%	11/15/22	9,705		9,822
	DuPont de Nemours Inc.	3.766%	11/15/20	24,437		24,862
	DuPont de Nemours Inc.	4.205%	11/15/23	106,935		113,824
	Eastman Chemical Co.	3.600%	8/15/22	19,770		20,257
	Ecolab Inc.	2.375%	8/10/22	18,145		18,168
11	Glencore Australia Holdings Pty Ltd.	4.500%	9/19/19	4,160		2,854
	International Flavors & Fragrances Inc.	3.400%	9/25/20	15,560		15,686
	Newmont Goldcorp Corp.	3.500%	3/15/22	8,685		8,854
	Nutrien Ltd.	4.875%	3/30/20	6,160		6,251
	Nutrien Ltd.	3.150%	10/1/22	4,855		4,916
	Nutrien Ltd.	3.500%	6/1/23	1,945		1,991
	Nutrien Ltd.	3.625%	3/15/24	30,897		31,909
	Praxair Inc.	2.200%	8/15/22	2,836		2,835
	Vale Overseas Ltd.	6.250%	8/10/26	6,410		7,275
13	Vale SA	3.750%	1/10/23	23,140		27,660
	WestRock RKT Co.	4.900%	3/1/22	3,960		4,176
	WestRock RKT Co.	4.000%	3/1/23	35,251		36,613
	Capital Goods (2.1%)
	Acuity Brands Lighting Inc.	6.000%	12/15/19	17,900		18,116
10	Airbus Finance BV	2.700%	4/17/23	5,982		6,047
	Ball Corp.	4.000%	11/15/23	5,345		5,545
10	Berry Global Escrow Corp.	4.875%	7/15/26	3,880		4,037
	Boeing Co.	2.300%	8/1/21	55,930		55,863
	Boeing Co.	2.125%	3/1/22	10,420		10,359
	Boeing Co.	2.700%	5/1/22	38,845		39,206
	Boeing Co.	1.875%	6/15/23	14,281		13,969
	Boeing Co.	2.800%	3/1/24	19,435		19,691
	Boeing Co.	2.850%	10/30/24	7,500		7,600
	Caterpillar Financial Services Corp.	1.850%	9/4/20	9,755		9,716
	Caterpillar Financial Services Corp.	2.650%	5/17/21	94,315		95,036
	Caterpillar Financial Services Corp.	2.400%	6/6/22	30,370		30,491
	Caterpillar Financial Services Corp.	3.300%	6/9/24	21,550		22,484
10	CFX Escrow Corp.	6.000%	2/15/24	5,200		5,499
	CNH Industrial Capital LLC	4.875%	4/1/21	3,830		3,953
	CNH Industrial Capital LLC	4.375%	4/5/22	22,700		23,518
	CNH Industrial NV	4.500%	8/15/23	4,800		5,053
	Embraer Netherlands Finance BV	5.050%	6/15/25	6,200		6,719
	Embraer Netherlands Finance BV	5.400%	2/1/27	2,365		2,638
	Embraer Overseas Ltd.	5.696%	9/16/23	1,281		1,408
	Embraer SA	5.150%	6/15/22	21,700		22,965
	Johnson Controls International plc	5.000%	3/30/20	10,700		10,865
	Johnson Controls International plc	3.750%	12/1/21	857		881
	Johnson Controls International plc	3.625%	7/2/24	8,998		9,301
10	L3 Technologies Inc.	4.950%	2/15/21	24,327		25,064
10	L3 Technologies Inc.	3.850%	6/15/23	23,300		24,371
	Parker-Hannifin Corp.	3.500%	9/15/22	5,800		5,991
	Precision Castparts Corp.	2.500%	1/15/23	89,457		90,011
	Raytheon Co.	4.400%	2/15/20	2,070		2,091
	Raytheon Co.	2.500%	12/15/22	14,600		14,651
	Reynolds Group Issuer Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu	5.750%	10/15/20	4,713		4,730
	Reynolds Group Issuer Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu	6.875%	2/15/21	6,240		6,240
7,10	Reynolds Group Issuer Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu, 3M USD LIBOR + 3.500%	5.803%	7/15/21	17,330		17,352
	Rockwell Collins Inc.	2.800%	3/15/22	41,987		42,290
	Stanley Black & Decker Inc.	2.900%	11/1/22	40,800		41,304
	Textron Inc.	7.250%	10/1/19	12,114		12,203
13	Thales SA	0.000%	5/31/22	20,800		23,164

23

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	United Rentals North America Inc.	4.625%	7/15/23	25,775		26,323
	United Rentals North America Inc.	4.625%	10/15/25	5,640		5,725
	United Rentals North America Inc.	5.500%	5/15/27	1,580		1,649
	United Technologies Corp.	4.500%	4/15/20	36,514		37,037
	United Technologies Corp.	3.350%	8/16/21	8,800		8,970
	United Technologies Corp.	1.950%	11/1/21	19,000		18,825
	United Technologies Corp.	2.300%	5/4/22	79,695		79,517
	United Technologies Corp.	3.100%	6/1/22	77,650		79,344
	United Technologies Corp.	3.650%	8/16/23	276,860		289,756
	Communication (3.3%)
	America Movil SAB de CV	5.000%	3/30/20	15,470		15,728
	American Tower Corp.	3.000%	6/15/23	5,400		5,483
	AT&T Inc.	2.800%	2/17/21	9,800		9,859
	AT&T Inc.	4.450%	5/15/21	17,600		18,202
	AT&T Inc.	3.200%	3/1/22	9,900		10,079
	AT&T Inc.	3.800%	3/15/22	42,505		43,982
	AT&T Inc.	3.000%	6/30/22	36,594		37,154
	AT&T Inc.	2.625%	12/1/22	9,800		9,854
	AT&T Inc.	3.600%	2/17/23	79,603		82,492
	CC Holdings GS V LLC / Crown Castle GS III Corp.	3.849%	4/15/23	24,548		25,564
	Charter Communications Operating LLC / Charter Communications Operating Capital	4.464%	7/23/22	56,000		58,623
	Charter Communications Operating LLC / Charter Communications Operating Capital	4.500%	2/1/24	49,519		52,547
	Comcast Corp.	5.150%	3/1/20	3,050		3,099
	Comcast Corp.	3.450%	10/1/21	11,821		12,116
	Comcast Corp.	3.125%	7/15/22	16,650		17,073
	Comcast Corp.	3.700%	4/15/24	33,228		35,105
10	Cox Communications Inc.	3.150%	8/15/24	27,090		27,545
	Crown Castle International Corp.	3.400%	2/15/21	57,918		58,560
	Crown Castle International Corp.	4.875%	4/15/22	18,000		19,065
	Crown Castle International Corp.	5.250%	1/15/23	66,590		72,169
	Crown Castle International Corp.	3.150%	7/15/23	41,835		42,675
	Crown Castle International Corp.	3.200%	9/1/24	58,815		59,999
10	Deutsche Telekom International Finance BV	1.950%	9/19/21	19,470		19,258
10	Deutsche Telekom International Finance BV	2.820%	1/19/22	26,000		26,184
	Discovery Communications LLC	2.200%	9/20/19	24,315		24,299
	Discovery Communications LLC	2.800%	6/15/20	53,165		53,234
	Discovery Communications LLC	4.375%	6/15/21	6,820		7,027
	Discovery Communications LLC	3.300%	5/15/22	14,436		14,700
	Discovery Communications LLC	3.500%	6/15/22	8,100		8,222
	Discovery Communications LLC	2.950%	3/20/23	90,377		91,190
	Discovery Communications LLC	3.800%	3/13/24	17,074		17,641
	Discovery Communications LLC	3.900%	11/15/24	26,620		27,699
10	Fox Corp.	3.666%	1/25/22	25,092		25,866
	Interpublic Group of Cos. Inc.	3.500%	10/1/20	15,560		15,745
	Interpublic Group of Cos. Inc.	3.750%	10/1/21	63,355		64,855
	Interpublic Group of Cos. Inc.	4.200%	4/15/24	9,800		10,481
	NBCUniversal Media LLC	5.150%	4/30/20	102,329		104,416
	NBCUniversal Media LLC	4.375%	4/1/21	14,500		15,006
	NBCUniversal Media LLC	2.875%	1/15/23	69,890		71,224
	Omnicom Group Inc. / Omnicom Capital Inc.	3.625%	5/1/22	83,655		86,056
	Qwest Corp.	6.750%	12/1/21	33,857		36,236
10	Sirius XM Radio Inc.	4.625%	7/15/24	5,145		5,274
10	Sky Ltd.	2.625%	9/16/19	12,200		12,199
10	Sky Ltd.	3.750%	9/16/24	24,800		26,279
10	Sky plc	3.125%	11/26/22	23,500		24,094
	T-Mobile USA Inc.	6.000%	3/1/23	25,187		25,596
	T-Mobile USA Inc.	6.500%	1/15/24	10,710		11,071
	T-Mobile USA Inc.	4.500%	2/1/26	8,080		8,221
11	Telstra Corp. Ltd.	7.750%	7/15/20	14,600		10,577
	Verizon Communications Inc.	3.125%	3/16/22	38,470		39,291
	Verizon Communications Inc.	2.450%	11/1/22	8,249		8,295

24

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Verizon Communications Inc.	5.150%	9/15/23	164,633		182,543
	Verizon Communications Inc.	4.150%	3/15/24	10,600		11,357
7,11	Verizon Communications Inc., 3M Australian Bank Bill Rate + 1.220%	2.780%	2/17/23	4,210		2,897
	Viacom Inc.	4.500%	3/1/21	14,725		15,121
	Viacom Inc.	3.875%	12/15/21	44,550		45,761
	Viacom Inc.	4.250%	9/1/23	94,005		98,947
	Vodafone Group plc	3.750%	1/16/24	19,004		19,810
10	Walt Disney Co.	3.000%	9/15/22	24,290		24,747
	Consumer Cyclical (3.3%)
10	1011778 BC ULC / New Red Finance Inc.	4.625%	1/15/22	21,840		21,895
	Alibaba Group Holding Ltd.	2.500%	11/28/19	9,314		9,315
10	Alimentation Couche-Tard Inc.	2.700%	7/26/22	59,525		59,589
	American Axle & Manufacturing Inc.	6.625%	10/15/22	3,970		4,019
	American Honda Finance Corp.	2.250%	8/15/19	41,660		41,657
	American Honda Finance Corp.	1.950%	7/20/20	14,640		14,606
	American Honda Finance Corp.	2.450%	9/24/20	16,675		16,709
	American Honda Finance Corp.	1.650%	7/12/21	9,900		9,774
	American Honda Finance Corp.	3.375%	12/10/21	87,100		89,171
13	American Honda Finance Corp.	0.350%	8/26/22	33,040		37,115
	American Honda Finance Corp.	3.450%	7/14/23	29,280		30,463
	American Honda Finance Corp.	3.625%	10/10/23	112,000		117,333
	AutoZone Inc.	2.875%	1/15/23	4,544		4,577
10	BMW US Capital LLC	3.250%	8/14/20	54,200		54,646
	Ford Motor Credit Co. LLC	2.597%	11/4/19	7,615		7,611
11	Ford Motor Credit Co. LLC	3.588%	6/2/20	28,134		19,729
	Ford Motor Credit Co. LLC	5.750%	2/1/21	11,559		12,004
	Ford Motor Credit Co. LLC	2.979%	8/3/22	8,780		8,690
	Ford Motor Credit Co. LLC	3.350%	11/1/22	48,500		48,425
	Ford Motor Credit Co. LLC	3.810%	1/9/24	9,800		9,795
	Ford Motor Credit Co. LLC	5.584%	3/18/24	38,700		41,413
	General Motors Co.	4.875%	10/2/23	24,704		26,253
	General Motors Financial Co. Inc.	2.450%	11/6/20	9,850		9,819
	General Motors Financial Co. Inc.	3.700%	11/24/20	49,450		50,030
	General Motors Financial Co. Inc.	4.200%	3/1/21	44,231		45,162
	General Motors Financial Co. Inc.	3.200%	7/6/21	63,607		64,048
	General Motors Financial Co. Inc.	4.375%	9/25/21	49,030		50,585
	General Motors Financial Co. Inc.	4.200%	11/6/21	43,800		45,099
	General Motors Financial Co. Inc.	3.450%	4/10/22	15,908		16,102
	General Motors Financial Co. Inc.	3.150%	6/30/22	4,900		4,922
	General Motors Financial Co. Inc.	3.250%	1/5/23	19,510		19,565
11	General Motors Financial Co. Inc.	3.850%	2/21/23	12,630		9,031
	General Motors Financial Co. Inc.	3.700%	5/9/23	10,461		10,655
	General Motors Financial Co. Inc.	4.250%	5/15/23	9,800		10,170
	General Motors Financial Co. Inc.	4.150%	6/19/23	5,500		5,681
	General Motors Financial Co. Inc.	5.100%	1/17/24	29,150		31,243
	General Motors Financial Co. Inc.	3.950%	4/13/24	24,350		24,945
	General Motors Financial Co. Inc.	3.500%	11/7/24	31,200		31,298
	General Motors Financial Co. Inc.	4.350%	4/9/25	6,591		6,811
10	Harley-Davidson Financial Services Inc.	2.400%	9/15/19	67,134		67,103
10	Harley-Davidson Financial Services Inc.	2.150%	2/26/20	62,102		61,875
10	Harley-Davidson Financial Services Inc.	2.400%	6/15/20	69,387		69,074
10	Harley-Davidson Financial Services Inc.	2.850%	1/15/21	6,244		6,249
10	Harley-Davidson Financial Services Inc.	2.550%	6/9/22	41,944		41,582
	Lowe’s Cos. Inc.	4.625%	4/15/20	11,720		11,772
	Lowe’s Cos. Inc.	3.875%	9/15/23	28,164		29,537
	Macy’s Retail Holdings Inc.	3.450%	1/15/21	14,640		14,713
10	Nissan Motor Acceptance Corp.	1.550%	9/13/19	2,365		2,362
10	Nissan Motor Acceptance Corp.	2.550%	3/8/21	9,380		9,359
10	Nissan Motor Acceptance Corp.	1.900%	9/14/21	11,962		11,744
10	Nissan Motor Acceptance Corp.	3.650%	9/21/21	30,750		31,293
10	Nissan Motor Acceptance Corp.	2.600%	9/28/22	7,400		7,351
10	Nissan Motor Acceptance Corp.	3.875%	9/21/23	58,125		60,356

25

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	PACCAR Financial Corp.	2.500%	8/14/20	2,930		2,941
10	Performance Food Group Inc.	5.500%	6/1/24	1,636		1,652
	TJX Cos. Inc.	2.750%	6/15/21	10,370		10,444
	Toyota Motor Corp.	3.183%	7/20/21	52,000		52,966
	Toyota Motor Credit Corp.	2.200%	1/10/20	48,655		48,660
	Toyota Motor Credit Corp.	4.500%	6/17/20	8,600		8,767
	Toyota Motor Credit Corp.	1.900%	4/8/21	3,610		3,591
	Toyota Motor Credit Corp.	2.750%	5/17/21	19,210		19,390
	Toyota Motor Credit Corp.	2.700%	1/11/23	7,080		7,175
	Toyota Motor Credit Corp.	3.450%	9/20/23	97,255		101,475
11	Volkswagen Financial Services Australia Pty Ltd.	3.100%	4/17/23	1,260		886
10	Volkswagen Group of America Finance LLC	3.875%	11/13/20	95,433		97,048
10	Volkswagen Group of America Finance LLC	4.000%	11/12/21	53,715		55,360
	Walmart Inc.	2.550%	4/11/23	17,221		17,474
	Walmart Inc.	3.400%	6/26/23	14,045		14,680
	Consumer Noncyclical (8.1%)
	AbbVie Inc.	2.300%	5/14/21	85,807		85,683
	AbbVie Inc.	3.375%	11/14/21	24,071		24,567
	AbbVie Inc.	2.900%	11/6/22	90,170		91,020
	AbbVie Inc.	3.200%	11/6/22	71,665		73,009
	AbbVie Inc.	2.850%	5/14/23	2,900		2,917
	AbbVie Inc.	3.750%	11/14/23	48,525		50,548
	Allergan Funding SCS	3.450%	3/15/22	11,000		11,204
	Allergan Funding SCS	3.850%	6/15/24	33,772		35,143
	Altria Group Inc.	9.250%	8/6/19	69,792		69,839
	Altria Group Inc.	3.490%	2/14/22	145,750		148,891
	Altria Group Inc.	2.850%	8/9/22	24,480		24,785
	AmerisourceBergen Corp.	3.500%	11/15/21	7,200		7,336
	Amgen Inc.	2.700%	5/1/22	15,340		15,417
	Amgen Inc.	2.650%	5/11/22	30,800		30,933
	Anheuser-Busch InBev Finance Inc.	3.300%	2/1/23	53,338		55,026
	Anheuser-Busch InBev Worldwide Inc.	6.875%	11/15/19	21,145		21,399
	Anheuser-Busch InBev Worldwide Inc.	2.500%	7/15/22	19,150		19,251
	Anheuser-Busch InBev Worldwide Inc.	4.150%	1/23/25	70,746		76,029
	AstraZeneca plc	3.500%	8/17/23	9,645		10,043
	BAT Capital Corp.	2.297%	8/14/20	33,497		33,420
	BAT Capital Corp.	2.764%	8/15/22	81,000		81,057
10	BAT International Finance plc	2.750%	6/15/20	4,800		4,804
13	BAT International Finance plc	4.875%	2/24/21	13,350		15,943
12	BAT International Finance plc	1.750%	7/5/21	14,538		17,865
10	BAT International Finance plc	3.250%	6/7/22	17,565		17,836
10	Bausch Health Cos. Inc.	6.500%	3/15/22	2,762		2,859
10	Bausch Health Cos. Inc.	7.000%	3/15/24	2,435		2,566
	Baxalta Inc.	3.600%	6/23/22	1,984		2,016
	Baxter International Inc.	1.700%	8/15/21	21,900		21,577
	Becton Dickinson & Co.	3.125%	11/8/21	34,675		35,121
	Becton Dickinson & Co.	2.894%	6/6/22	12,725		12,835
13	Becton Dickinson Euro Finance Sarl	0.174%	6/4/21	65,491		72,863
	Biogen Inc.	3.625%	9/15/22	36,347		37,509
	Boston Scientific Corp.	3.450%	3/1/24	24,165		25,093
10	Bristol-Myers Squibb Co.	2.550%	5/14/21	111,475		112,008
10	Bristol-Myers Squibb Co.	2.600%	5/16/22	186,865		188,556
	Celgene Corp.	2.250%	8/15/21	8,234		8,183
	Celgene Corp.	3.250%	8/15/22	61,772		63,305
	Celgene Corp.	3.550%	8/15/22	27,196		28,111
10	Cigna Corp.	3.200%	9/17/20	59,050		59,486
10	Cigna Corp.	3.400%	9/17/21	20,000		20,353
10	Cigna Corp.	3.750%	7/15/23	45,602		47,370
	CommonSpirit Health	4.200%	8/1/23	1,900		1,991
	Conagra Brands Inc.	4.950%	8/15/20	2,679		2,742
	Constellation Brands Inc.	4.250%	5/1/23	75,604		79,762
	CVS Health Corp.	2.800%	7/20/20	124,631		124,933
	CVS Health Corp.	3.350%	3/9/21	187,065		189,532

26

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	CVS Health Corp.	2.125%	6/1/21	41,153		40,879
	CVS Health Corp.	3.500%	7/20/22	41,281		42,360
	CVS Health Corp.	2.750%	12/1/22	31,525		31,580
	CVS Health Corp.	3.700%	3/9/23	314,550		324,336
13	Diageo Finance plc	0.250%	10/22/21	48,600		54,360
	Dignity Health California	2.637%	11/1/19	2,000		2,001
	Express Scripts Holding Co.	2.600%	11/30/20	40,693		40,728
	Express Scripts Holding Co.	4.750%	11/15/21	32,200		33,799
	Express Scripts Holding Co.	3.900%	2/15/22	28,500		29,396
	Express Scripts Holding Co.	3.050%	11/30/22	38,085		38,557
	Express Scripts Holding Co.	3.000%	7/15/23	43,800		44,258
	Express Scripts Holding Co.	3.500%	6/15/24	33,000		34,082
11	FBG Finance Pty Ltd.	3.750%	8/7/20	18,740		13,088
	Gilead Sciences Inc.	1.850%	9/20/19	28,785		28,767
	Gilead Sciences Inc.	4.400%	12/1/21	10,471		10,904
	Gilead Sciences Inc.	3.250%	9/1/22	31,100		31,923
	Gilead Sciences Inc.	2.500%	9/1/23	15,225		15,275
	Gilead Sciences Inc.	3.700%	4/1/24	19,058		20,011
	GlaxoSmithKline Capital plc	2.875%	6/1/22	249,700		253,168
10	Grupo Bimbo SAB de CV	4.500%	1/25/22	11,180		11,566
	HCA Inc.	5.000%	3/15/24	86,830		94,211
10	Hologic Inc.	4.375%	10/15/25	14,000		14,227
	Keurig Dr Pepper Inc.	3.551%	5/25/21	97,445		99,226
10	Kraft Heinz Foods Co.	4.875%	2/15/25	83,600		86,257
	Kroger Co.	6.150%	1/15/20	13,050		13,263
	Kroger Co.	2.600%	2/1/21	39,050		39,121
	Kroger Co.	2.950%	11/1/21	43,700		44,129
	Kroger Co.	2.800%	8/1/22	33,700		34,002
	Kroger Co.	3.850%	8/1/23	4,900		5,123
	Kroger Co.	4.000%	2/1/24	13,700		14,442
	Laboratory Corp. of America Holdings	3.750%	8/23/22	25,015		25,744
10	Lamb Weston Holdings Inc.	4.625%	11/1/24	4,853		5,059
	McCormick & Co. Inc.	2.700%	8/15/22	4,900		4,914
	McKesson Corp.	2.700%	12/15/22	59,075		59,197
	McKesson Corp.	2.850%	3/15/23	14,515		14,563
13	Medtronic Global Holdings SCA	0.000%	3/7/21	126,280		140,130
	Molson Coors Brewing Co.	3.500%	5/1/22	30,238		30,964
10	Mylan Inc.	3.125%	1/15/23	8,715		8,733
13	Mylan NV	2.250%	11/22/24	7,080		8,442
10	Pernod Ricard SA	5.750%	4/7/21	4,850		5,100
10	Pernod Ricard SA	4.250%	7/15/22	18,900		19,802
	Perrigo Finance Unlimited Co.	3.500%	12/15/21	338		335
	Philip Morris International Inc.	2.500%	8/22/22	19,354		19,379
	Philip Morris International Inc.	2.625%	3/6/23	3,500		3,517
10	Reckitt Benckiser Treasury Services plc	2.375%	6/24/22	93,618		93,399
10	Reckitt Benckiser Treasury Services plc	2.750%	6/26/24	102,610		103,282
	Reynolds American Inc.	4.000%	6/12/22	35,375		36,652
	Shire Acquisitions Investments Ireland DAC	1.900%	9/23/19	79,748		79,671
	Shire Acquisitions Investments Ireland DAC	2.400%	9/23/21	48,625		48,536
	Shire Acquisitions Investments Ireland DAC	2.875%	9/23/23	77,255		78,047
	SSM Health Care Corp.	3.688%	6/1/23	21,250		22,159
10	Takeda Pharmaceutical Co. Ltd.	4.000%	11/26/21	145,870		150,434
10	Takeda Pharmaceutical Co. Ltd.	2.450%	1/18/22	21,450		21,327
10	Takeda Pharmaceutical Co. Ltd.	4.400%	11/26/23	30,250		32,290
	Tenet Healthcare Corp.	4.750%	6/1/20	5,989		6,064
	Teva Pharmaceutical Finance Netherlands III BV	2.200%	7/21/21	14,875		13,964
	Thermo Fisher Scientific Inc.	3.000%	4/15/23	12,200		12,442
	Tyson Foods Inc.	4.500%	6/15/22	22,599		23,708
	Tyson Foods Inc.	3.900%	9/28/23	20,328		21,248
	Zimmer Biomet Holdings Inc.	2.700%	4/1/20	79,333		79,365
	Energy (5.6%)
	Anadarko Petroleum Corp.	4.850%	3/15/21	9,825		10,137
	Andeavor Logistics LP / Tesoro Logistics Finance Corp.	5.500%	10/15/19	33,520		33,621

27

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Andeavor Logistics LP / Tesoro Logistics Finance Corp.	3.500%	12/1/22	31,634		32,330
	Apache Corp.	3.625%	2/1/21	7,780		7,862
	Baker Hughes a GE Co. LLC	3.200%	8/15/21	2,940		2,978
	Baker Hughes a GE Co. LLC / Baker Hughes Co-Obligor Inc.	2.773%	12/15/22	105,424		106,254
	BP Capital Markets America Inc.	4.500%	10/1/20	101,900		104,466
	BP Capital Markets America Inc.	4.742%	3/11/21	68,673		71,340
	BP Capital Markets America Inc.	3.245%	5/6/22	40,695		41,706
	BP Capital Markets America Inc.	2.520%	9/19/22	26,125		26,270
	BP Capital Markets America Inc.	2.750%	5/10/23	13,013		13,183
	BP Capital Markets America Inc.	3.216%	11/28/23	21,055		21,697
	BP Capital Markets America Inc.	3.790%	2/6/24	59,166		62,501
	BP Capital Markets America Inc.	3.224%	4/14/24	21,134		21,822
	BP Capital Markets plc	2.521%	1/15/20	22,624		22,645
	BP Capital Markets plc	2.315%	2/13/20	19,950		19,945
	BP Capital Markets plc	3.062%	3/17/22	10		10
	BP Capital Markets plc	2.500%	11/6/22	23,356		23,495
	Buckeye Partners LP	4.150%	7/1/23	3,230		3,174
	Buckeye Partners LP	4.350%	10/15/24	4,047		3,891
	Canadian Natural Resources Ltd.	2.950%	1/15/23	36,764		37,123
	Canadian Natural Resources Ltd.	3.800%	4/15/24	23,800		24,839
	Cenovus Energy Inc.	5.700%	10/15/19	36,523		36,752
	Concho Resources Inc.	4.375%	1/15/25	47,626		49,460
	ConocoPhillips Co.	2.400%	12/15/22	23,248		23,224
	Continental Resources Inc.	5.000%	9/15/22	57,368		57,870
	Continental Resources Inc.	4.500%	4/15/23	6,053		6,321
	Continental Resources Inc.	3.800%	6/1/24	22,180		22,701
	Dominion Energy Gas Holdings LLC	2.500%	12/15/19	21,500		21,480
	Dominion Energy Gas Holdings LLC	2.800%	11/15/20	11,700		11,747
	Dominion Energy Gas Holdings LLC	3.550%	11/1/23	12,700		13,113
	Enbridge Energy Partners LP	4.375%	10/15/20	975		995
	Encana Corp.	3.900%	11/15/21	4,860		4,965
	Energy Transfer Operating LP	4.150%	10/1/20	103,699		105,277
	Energy Transfer Operating LP	4.650%	6/1/21	15,830		16,340
	Energy Transfer Operating LP	5.200%	2/1/22	41,782		43,734
	Energy Transfer Operating LP	4.250%	3/15/23	4,866		5,068
	Energy Transfer Operating LP	4.200%	9/15/23	41,940		43,930
	Energy Transfer Operating LP	4.900%	2/1/24	20,621		21,989
	Energy Transfer Operating LP	4.500%	4/15/24	18,139		19,268
	Energy Transfer Partners LP / Regency Energy Finance Corp.	5.750%	9/1/20	8,167		8,366
	Energy Transfer Partners LP / Regency Energy Finance Corp.	5.875%	3/1/22	68,348		73,098
	Energy Transfer Partners LP / Regency Energy Finance Corp.	5.000%	10/1/22	34,214		36,260
	Energy Transfer Partners LP / Regency Energy Finance Corp.	4.500%	11/1/23	29,482		31,140
10	Eni SPA	4.000%	9/12/23	87,830		91,782
	Enterprise Products Operating LLC	2.550%	10/15/19	1,460		1,460
	Enterprise Products Operating LLC	5.200%	9/1/20	29,415		30,277
	Enterprise Products Operating LLC	2.850%	4/15/21	32,423		32,623
	Enterprise Products Operating LLC	3.500%	2/1/22	66,140		67,826
	EOG Resources Inc.	4.100%	2/1/21	24,303		24,984
	EQT Corp.	2.500%	10/1/20	29,300		29,114
	EQT Corp.	4.875%	11/15/21	1,995		2,055
	EQT Corp.	3.000%	10/1/22	72,296		70,098
	Husky Energy Inc.	3.950%	4/15/22	1,410		1,457
	Husky Energy Inc.	4.000%	4/15/24	3,255		3,410
	Kinder Morgan Energy Partners LP	6.850%	2/15/20	10,202		10,415
	Kinder Morgan Energy Partners LP	6.500%	4/1/20	58,328		59,790
	Kinder Morgan Energy Partners LP	5.300%	9/15/20	11,725		12,086
	Kinder Morgan Energy Partners LP	5.800%	3/1/21	4,855		5,095
	Kinder Morgan Energy Partners LP	5.000%	10/1/21	12,597		13,153
	Kinder Morgan Energy Partners LP	3.950%	9/1/22	77,198		79,911

28

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Kinder Morgan Energy Partners LP	3.500%	9/1/23	7,301		7,470
	Kinder Morgan Inc.	3.050%	12/1/19	1,760		1,762
	Kinder Morgan Inc.	6.500%	9/15/20	5,396		5,568
10	Kinder Morgan Inc.	5.000%	2/15/21	26,005		26,856
	Kinder Morgan Inc.	3.150%	1/15/23	6,420		6,533
10	Kinder Morgan Inc.	5.625%	11/15/23	14,000		15,476
	Marathon Oil Corp.	2.700%	6/1/20	6,810		6,817
	Marathon Oil Corp.	2.800%	11/1/22	33,270		33,329
	Marathon Petroleum Corp.	3.400%	12/15/20	24,525		24,797
	Marathon Petroleum Corp.	4.750%	12/15/23	22,390		24,171
10	Midwest Connector Capital Co. LLC	3.625%	4/1/22	54,208		55,322
	Newfield Exploration Co.	5.750%	1/30/22	41,004		43,772
	Newfield Exploration Co.	5.625%	7/1/24	23,306		25,695
	Noble Energy Inc.	4.150%	12/15/21	4,845		4,986
	Phillips 66	4.300%	4/1/22	37,686		39,620
	Phillips 66 Partners LP	2.646%	2/15/20	15,137		15,134
	Plains All American Pipeline LP / PAA Finance Corp.	5.000%	2/1/21	20,908		21,474
	Plains All American Pipeline LP / PAA Finance Corp.	3.650%	6/1/22	29,874		30,535
	Plains All American Pipeline LP / PAA Finance Corp.	3.850%	10/15/23	10,132		10,442
	Sabine Pass Liquefaction LLC	5.625%	2/1/21	102,986		106,693
	Sabine Pass Liquefaction LLC	6.250%	3/15/22	21,818		23,574
	Sabine Pass Liquefaction LLC	5.625%	4/15/23	77,660		84,455
	Shell International Finance BV	1.875%	5/10/21	40,885		40,661
	Shell International Finance BV	2.250%	1/6/23	40,260		40,310
	Southern Natural Gas Co. LLC / Southern Natural Issuing Corp.	4.400%	6/15/21	6,395		6,581
7	Spectra Energy Partners LP, 3M USD LIBOR + 0.700%	3.179%	6/5/20	97,570		97,815
	Sunoco Logistics Partners Operations LP	4.400%	4/1/21	51,102		52,472
	Sunoco Logistics Partners Operations LP	3.450%	1/15/23	12,610		12,820
	Sunoco Logistics Partners Operations LP	4.250%	4/1/24	23,370		24,506
	Total Capital Canada Ltd.	2.750%	7/15/23	18,464		18,784
	Total Capital International SA	2.218%	7/12/21	29,115		29,120
	Total Capital International SA	2.875%	2/17/22	30,553		31,054
	Total Capital International SA	2.700%	1/25/23	9,385		9,542
	Total Capital International SA	2.434%	1/10/25	51,980		52,172
	Total Capital SA	4.250%	12/15/21	19,525		20,424
	TransCanada PipeLines Ltd.	2.125%	11/15/19	133,475		133,287
	TransCanada PipeLines Ltd.	2.500%	8/1/22	26,092		25,919
7	TransCanada PipeLines Ltd., 3M USD LIBOR + 0.270%	2.793%	11/15/19	130,065		130,131
	Western Midstream Operating LP	5.375%	6/1/21	1,940		2,004
	Western Midstream Operating LP	4.000%	7/1/22	8,336		8,487
	Williams Cos. Inc.	5.250%	3/15/20	68,835		69,930
	Williams Cos. Inc.	4.125%	11/15/20	35,615		36,219
	Williams Cos. Inc.	4.000%	11/15/21	11,585		11,904
	Williams Cos. Inc.	3.600%	3/15/22	37,892		38,756
	Williams Cos. Inc.	3.350%	8/15/22	9,730		9,910
	Williams Cos. Inc.	4.300%	3/4/24	16,890		17,897
	Other Industrial (0.2%)
10	CK Hutchison International 17 II Ltd.	2.250%	9/29/20	95,155		94,767
	Technology (3.4%)
	Apple Inc.	2.400%	5/3/23	7,945		8,009
	Apple Inc.	3.000%	2/9/24	23,205		23,914
	Apple Inc.	3.450%	5/6/24	31,296		32,967
	Apple Inc.	2.850%	5/11/24	99,570		102,204
	Apple Inc.	2.750%	1/13/25	48,730		49,742
	Broadcom Corp. / Broadcom Cayman Finance Ltd.	2.375%	1/15/20	17,600		17,575
	Broadcom Corp. / Broadcom Cayman Finance Ltd.	2.200%	1/15/21	11,720		11,627
	Broadcom Corp. / Broadcom Cayman Finance Ltd.	3.000%	1/15/22	71,959		72,274
	Broadcom Corp. / Broadcom Cayman Finance Ltd.	2.650%	1/15/23	39,050		38,494
10	Broadcom Inc.	3.125%	4/15/21	48,700		48,947
10	Broadcom Inc.	3.125%	10/15/22	39,000		39,111

29

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
10	CommScope Finance LLC	5.500%	3/1/24	4,860		4,945
10	Dell International LLC / EMC Corp.	4.420%	6/15/21	131,237		135,109
10	Dell International LLC / EMC Corp.	4.000%	7/15/24	9,725		10,024
	Fidelity National Information Services Inc.	0.000%	8/19/19	14,800		14,780
13	Fidelity National Information Services Inc.	0.125%	5/21/21	19,400		21,570
10	First Data Corp.	5.750%	1/15/24	29,130		29,931
	Fiserv Inc.	2.750%	7/1/24	90,195		90,672
	Hewlett Packard Enterprise Co.	3.600%	10/15/20	115,607		116,961
	Hewlett Packard Enterprise Co.	4.400%	10/15/22	37,385		39,278
	International Business Machines Corp.	2.800%	5/13/21	113,210		114,142
	International Business Machines Corp.	2.500%	1/27/22	24,000		24,078
	International Business Machines Corp.	2.850%	5/13/22	171,510		173,824
	International Business Machines Corp.	3.000%	5/15/24	48,555		49,680
	Marvell Technology Group Ltd.	4.200%	6/22/23	29,250		30,310
10	MSCI Inc.	5.250%	11/15/24	42,733		43,962
10	NXP BV / NXP Funding LLC	3.875%	9/1/22	100,536		103,516
10	NXP BV / NXP Funding LLC	4.625%	6/1/23	19,500		20,548
10	NXP BV / NXP Funding LLC	4.875%	3/1/24	43,225		46,251
	Oracle Corp.	2.500%	10/15/22	9,800		9,876
	Oracle Corp.	2.625%	2/15/23	55,752		56,332
	Oracle Corp.	3.625%	7/15/23	8,000		8,397
	Oracle Corp.	2.400%	9/15/23	77,063		77,339
	Oracle Corp.	2.950%	11/15/24	63,255		64,928
	QUALCOMM Inc.	2.600%	1/30/23	94,450		94,820
	QUALCOMM Inc.	2.900%	5/20/24	9,750		9,889
	Total System Services Inc.	3.800%	4/1/21	49,370		50,246
	Tyco Electronics Group SA	2.350%	8/1/19	18,380		18,379
	Tyco Electronics Group SA	4.875%	1/15/21	6,020		6,221
	Tyco Electronics Group SA	3.500%	2/3/22	15,220		15,547
	Tyco Electronics Group SA	3.450%	8/1/24	17,647		18,228
§,4,10	Vantage Data Centers LLC	3.188%	7/15/44	6,000		6,000
	Verisk Analytics Inc.	5.800%	5/1/21	12,428		13,101
	Verisk Analytics Inc.	4.125%	9/12/22	18,719		19,568
	VMware Inc.	2.300%	8/21/20	29,350		29,267
	VMware Inc.	2.950%	8/21/22	48,630		48,992
	Transportation (2.0%)
10	Air Canada	7.750%	4/15/21	58,823		63,100
4,10	Air Canada 2013-1 Class B Pass Through Trust	5.375%	5/15/21	8,181		8,418
11	Aurizon Network Pty Ltd.	5.750%	10/28/20	23,510		16,883
11	Aurizon Network Pty Ltd.	4.000%	6/21/24	9,320		6,804
	Burlington Northern Santa Fe LLC	3.050%	3/15/22	5,700		5,795
	Canadian National Railway Co.	2.850%	12/15/21	4,800		4,844
4	Continental Airlines 2000-1 Class A-1 Pass Through Trust	8.048%	11/1/20	1,364		1,409
4	Continental Airlines 2005-ERJ1 Pass Through Trust	9.798%	10/1/22	11,693		12,150
4	Continental Airlines 2009-2 Class A Pass Through Trust	7.250%	5/10/21	2,782		2,812
4	Continental Airlines 2010-1 Class A Pass Through Trust	4.750%	7/12/22	3,347		3,432
4	Continental Airlines 2012-2 Class B Pass Through Trust	5.500%	4/29/22	2,388		2,447
	CSX Corp.	3.400%	8/1/24	37,400		39,027
4	CSX Transportation Inc.	6.251%	1/15/23	2,104		2,314
4,15	Delta Air Lines 2002-1 Class G-1 Pass Through Trust	6.718%	7/2/24	19,348		20,587
4	Delta Air Lines 2007-1 Class A Pass Through Trust	6.821%	2/10/24	62,107		67,957
4	Delta Air Lines 2007-1 Class B Pass Through Trust	8.021%	8/10/22	6,239		6,849
4	Delta Air Lines 2009-1 Class A Pass Through Trust	7.750%	6/17/21	12,158		12,379
4	Delta Air Lines 2012-1 Class A Pass Through Trust	4.750%	11/7/21	2,515		2,552
4	Delta Air Lines 2019-1 Class A Pass Through Trust	3.404%	4/25/24	24,350		25,120
4	Delta Air Lines 2019-1 Class AA Pass Through Trust	3.204%	4/25/24	37,325		38,428
	Delta Air Lines Inc.	2.875%	3/13/20	41,950		41,966
	Delta Air Lines Inc.	3.400%	4/19/21	109,105		110,224
	Delta Air Lines Inc.	3.800%	4/19/23	70,250		72,339

30

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
10	ERAC USA Finance LLC	2.600%	12/1/21	7,215		7,228
10	ERAC USA Finance LLC	3.300%	10/15/22	34,000		34,749
10	ERAC USA Finance LLC	2.700%	11/1/23	21,000		21,085
	FedEx Corp.	3.400%	1/14/22	22,155		22,680
4,10	Heathrow Funding Ltd.	4.875%	7/15/23	44,150		45,761
10	Penske Truck Leasing Co. LP / PTL Finance Corp.	3.200%	7/15/20	4,200		4,215
10	Penske Truck Leasing Co. LP / PTL Finance Corp.	3.300%	4/1/21	34,000		34,332
11	Qantas Airways Ltd.	7.500%	6/11/21	39,200		29,618
11	Qantas Airways Ltd.	7.750%	5/19/22	4,780		3,787
	Ryder System Inc.	2.875%	6/1/22	48,550		48,963
	Ryder System Inc.	2.500%	9/1/22	14,200		14,177
	Ryder System Inc.	3.875%	12/1/23	13,690		14,382
	Ryder System Inc.	3.650%	3/18/24	72,895		76,213
	Southwest Airlines Co.	2.750%	11/16/22	29,000		29,143
4	Southwest Airlines Co. 2007-1 Pass Through Trust	6.150%	2/1/24	3,224		3,416
4	Spirit Airlines 2015-1 Pass Through Trust B	4.450%	10/1/25	6,458		6,648
4	Spirit Airlines Pass Through Trust 2017-1B	3.800%	2/15/26	19,150		19,296
4	UAL 2007-1 Pass Through Trust	6.636%	7/2/22	15,490		16,395
	Union Pacific Corp.	3.200%	6/8/21	8,000		8,131
	Union Pacific Corp.	2.950%	3/1/22	78,305		79,507
	Union Pacific Corp.	4.163%	7/15/22	6,500		6,809
	Union Pacific Corp.	2.950%	1/15/23	22,500		22,878
	Union Pacific Corp.	3.150%	3/1/24	48,560		49,932
	United Parcel Service Inc.	2.450%	10/1/22	23,500		23,650
4	US Airways 2001-1C Pass Through Trust	7.346%	9/20/23	5,738		6,185
						17,527,766
Utilities (4.5%)
	Electric (4.3%)
	AEP Texas Inc.	2.400%	10/1/22	8,120		8,107
	Alabama Power Co.	3.375%	10/1/20	21,260		21,487
	Ameren Illinois Co.	2.700%	9/1/22	7,234		7,315
	American Electric Power Co. Inc.	2.150%	11/13/20	42,780		42,649
	Baltimore Gas & Electric Co.	3.500%	11/15/21	9,535		9,749
	Baltimore Gas & Electric Co.	2.800%	8/15/22	19,895		20,091
	Berkshire Hathaway Energy Co.	2.375%	1/15/21	26,020		26,024
	Berkshire Hathaway Energy Co.	2.800%	1/15/23	50,295		50,988
	Berkshire Hathaway Energy Co.	3.750%	11/15/23	24,240		25,522
	CenterPoint Energy Inc.	3.600%	11/1/21	39,595		40,439
	CenterPoint Energy Inc.	3.850%	2/1/24	4,935		5,161
	Commonwealth Edison Co.	4.000%	8/1/20	27,778		28,145
	Dominion Energy Inc.	5.200%	8/15/19	4,175		4,179
	Dominion Energy Inc.	2.750%	9/15/22	31,882		31,956
7,10	Dominion Energy Inc., 3M USD LIBOR + 0.400%	2.920%	12/1/20	195,160		195,281
	DTE Electric Co.	3.900%	6/1/21	14,230		14,571
	DTE Electric Co.	2.650%	6/15/22	970		976
	DTE Energy Co.	2.600%	6/15/22	17,885		17,815
	DTE Energy Co.	3.300%	6/15/22	15,823		16,139
	DTE Energy Co.	3.700%	8/1/23	67,545		70,239
	DTE Energy Co.	3.850%	12/1/23	4,247		4,440
	Duke Energy Corp.	3.227%	3/11/22	290,625		299,457
	Duke Energy Corp.	3.950%	10/15/23	13,291		14,048
10	EDP Finance BV	4.125%	1/15/20	61,198		61,505
10	EDP Finance BV	5.250%	1/14/21	71,670		74,191
	Entergy Arkansas Inc.	3.750%	2/15/21	8,520		8,672
	Entergy Louisiana LLC	4.800%	5/1/21	12,415		12,788
	Entergy Louisiana LLC	3.300%	12/1/22	6,710		6,882
7,11	ETSA Utilities Finance Pty Ltd., 3M Australian Bank Bill Rate + 0.260%	1.288%	10/15/19	9,720		6,640
	Exelon Corp.	2.850%	6/15/20	37,065		37,163
	Exelon Corp.	5.150%	12/1/20	17,959		18,468
	Exelon Corp.	2.450%	4/15/21	8,638		8,619
	Exelon Corp.	3.497%	6/1/22	9,089		9,287
	Exelon Generation Co. LLC	2.950%	1/15/20	63,015		63,076

31

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Exelon Generation Co. LLC	3.400%	3/15/22	7,500		7,650
	FirstEnergy Corp.	2.850%	7/15/22	97,098		97,944
	FirstEnergy Corp.	4.250%	3/15/23	48,800		51,386
10	FirstEnergy Transmission LLC	4.350%	1/15/25	21,743		23,331
	Fortis Inc.	2.100%	10/4/21	22,465		22,252
	Georgia Power Co.	2.000%	9/8/20	50,060		49,818
	Georgia Power Co.	2.400%	4/1/21	50,514		50,465
13	innogy Finance BV	6.500%	8/10/21	12,600		15,835
	ITC Holdings Corp.	2.700%	11/15/22	29,250		29,312
	LG&E & KU Energy LLC	3.750%	11/15/20	13,482		13,659
	LG&E & KU Energy LLC	4.375%	10/1/21	9,505		9,827
	National Rural Utilities Cooperative Finance Corp.	1.500%	11/1/19	3,900		3,893
	National Rural Utilities Cooperative Finance Corp.	2.350%	6/15/20	27,320		27,347
	NextEra Energy Capital Holdings Inc.	2.900%	4/1/22	61,360		62,223
	NextEra Energy Capital Holdings Inc.	3.300%	8/15/22	354,630		361,499
	NRG Energy Inc.	7.250%	5/15/26	12,612		13,621
	NSTAR Electric Co.	3.500%	9/15/21	16,700		17,014
	NSTAR Electric Co.	2.375%	10/15/22	7,475		7,482
	NV Energy Inc.	6.250%	11/15/20	6,800		7,118
10	Oncor Electric Delivery Co. LLC	2.750%	6/1/24	48,545		49,177
	PECO Energy Co.	3.150%	10/15/25	3,885		4,017
	Pinnacle West Capital Corp.	2.250%	11/30/20	60,500		60,226
	PPL Capital Funding Inc.	4.200%	6/15/22	2,050		2,134
	PPL Capital Funding Inc.	3.500%	12/1/22	9,215		9,459
	Progress Energy Inc.	4.400%	1/15/21	58,514		59,780
	Progress Energy Inc.	3.150%	4/1/22	17,667		17,923
	Puget Energy Inc.	6.500%	12/15/20	15,190		15,958
	Puget Energy Inc.	6.000%	9/1/21	4,135		4,399
	Puget Energy Inc.	5.625%	7/15/22	47,334		50,582
	Southern Co.	2.750%	6/15/20	48,140		48,235
	Southern Co.	2.350%	7/1/21	76,255		75,988
	Southern Power Co.	1.950%	12/15/19	32,735		32,674
	Southwestern Electric Power Co.	3.550%	2/15/22	16,040		16,379
	Tampa Electric Co.	5.400%	5/15/21	12,630		13,214
7,11	Victoria Power Networks Finance Pty Ltd., 3M Australian Bank Bill Rate + 0.280%	1.405%	1/15/22	7,300		4,902
	Virginia Electric & Power Co.	3.450%	9/1/22	15,835		16,287
	Virginia Electric & Power Co.	3.450%	2/15/24	11,684		12,141
	Natural Gas (0.2%)
10	Engie SA	2.875%	10/10/22	7,269		7,372
	Sempra Energy	2.400%	2/1/20	58,530		58,456
	Sempra Energy	2.400%	3/15/20	10,265		10,250
	Sempra Energy	2.850%	11/15/20	9,770		9,812
	Sempra Energy	2.900%	2/1/23	16,585		16,677
	Southern Co. Gas Capital Corp.	2.450%	10/1/23	6,570		6,533
	Other Utility (0.0%)
11	Energy Partnership Gas Pty Ltd.	4.250%	6/15/20	3,270		2,257
						2,738,577
Total Corporate Bonds (Cost $35,613,893)						36,039,388
Sovereign Bonds (6.2%)
10	Abu Dhabi National Energy Co. PJSC	4.875%	4/23/30	4,600		5,153
10	Arab Petroleum Investments Corp.	4.125%	9/18/23	15,718		16,460
13	Arab Republic of Egypt	4.750%	4/16/26	4,800		5,504
	Argentine Republic	6.875%	4/22/21	24,560		22,073
13	Argentine Republic	3.875%	1/15/22	14,400		13,372
13	Argentine Republic	3.375%	1/15/23	16,309		14,530
10	Avi Funding Co. Ltd.	2.850%	9/16/20	11,075		11,104
	Avi Funding Co. Ltd.	2.850%	9/16/20	8,875		8,906
10	Banque Ouest Africaine de Developpement	5.500%	5/6/21	6,500		6,759
10	Banque Ouest Africaine de Developpement	5.000%	7/27/27	17,455		18,384
10	Bermuda	4.138%	1/3/23	6,000		6,273

32

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
10	Bermuda	4.854%	2/6/24	2,861		3,118
10	BNG Bank NV	2.125%	12/14/20	36,883		36,904
10	BOC Aviation Ltd.	2.375%	9/15/21	14,650		14,471
	CCBL Cayman Corp. Ltd.	3.250%	7/28/20	19,500		19,554
10	CDP Financial Inc.	4.400%	11/25/19	51,960		52,300
10	CDP Financial Inc.	3.150%	7/24/24	24,580		25,578
	Centrais Eletricas Brasileiras SA	5.750%	10/27/21	7,000		7,331
4	Ciudad Autonoma De Buenos Aires	8.950%	2/19/21	673		681
	CNOOC Finance 2015 Australia Pty Ltd.	2.625%	5/5/20	6,100		6,098
	CNPC General Capital Ltd.	2.700%	11/25/19	8,000		8,004
	Corp. Andina de Fomento	2.200%	7/18/20	45,131		44,935
	Corp. Andina de Fomento	4.375%	6/15/22	17,129		17,968
10	Corp. Financiera de Desarrollo SA	4.750%	2/8/22	4,523		4,727
	Corp. Financiera de Desarrollo SA	4.750%	2/8/22	11,950		12,507
	Corp. Financiera de Desarrollo SA	4.750%	7/15/25	18,465		19,908
10	CPPIB Capital Inc.	1.250%	9/20/19	78,037		77,926
	Development Bank of Kazakhstan JSC	4.125%	12/10/22	12,155		12,464
10	Dexia Credit Local SA	2.500%	1/25/21	97,550		97,963
10,16	Dexia Credit Local SA	1.875%	9/15/21	9,765		9,706
10	Dexia Credit Local SA	2.375%	9/20/22	5,800		5,837
4	Dominican Republic	7.500%	5/6/21	3,627		3,820
	Dominican Republic	6.600%	1/28/24	4,125		4,590
10	Electricite de France SA	4.500%	9/21/28	31,087		34,196
	Emirate of Abu Dhabi	3.125%	10/11/27	16,217		16,830
	Equinor ASA	2.250%	11/8/19	19,500		19,479
	Equinor ASA	2.900%	11/8/20	10,000		10,081
	Equinor ASA	3.150%	1/23/22	2,000		2,043
	Export-Import Bank of India	2.750%	4/1/20	3,870		3,870
	Export-Import Bank of India	2.750%	8/12/20	5,317		5,316
	Export-Import Bank of Korea	2.375%	8/12/19	14,980		14,981
	Export-Import Bank of Korea	1.500%	10/21/19	56,405		56,322
	Export-Import Bank of Korea	5.125%	6/29/20	20,000		20,479
	Export-Import Bank of Korea	4.000%	1/29/21	2,000		2,046
	Export-Import Bank of Korea	2.750%	1/25/22	2,500		2,520
	Export-Import Bank of Korea	3.000%	11/1/22	14,078		14,326
7	Export-Import Bank of Korea, 3M USD LIBOR + 0.925%	3.501%	11/1/22	6,950		7,037
4	Federative Republic of Brazil	4.500%	5/30/29	10,310		10,735
	First Abu Dhabi Bank PJSC	3.000%	8/13/19	19,500		19,496
	Fondo MIVIVIENDA SA	3.500%	1/31/23	9,720		9,899
	Gazprom OAO Via Gaz Capital SA	6.510%	3/7/22	7,730		8,389
	Harvest Operations Corp.	3.000%	9/21/22	2,875		2,910
	ICBCIL Finance Co. Ltd.	3.250%	3/17/20	5,400		5,413
	ICBCIL Finance Co. Ltd.	3.000%	4/5/20	22,740		22,759
10	Indonesia Asahan Aluminium Persero PT	5.230%	11/15/21	11,990		12,590
	Industrial & Commercial Bank of China Ltd.	3.231%	11/13/19	22,300		22,340
	Industrial & Commercial Bank of China Ltd.	2.905%	11/13/20	7,050		7,066
7	Industrial & Commercial Bank of China Ltd., 3M USD LIBOR + 0.750%	3.310%	11/8/20	20,000		20,019
7,17	Japan Bank for International Cooperation, 3M USD LIBOR + 0.390%	2.668%	7/21/20	5,856		5,873
17	Japan Finance Organization for Municipalities	4.000%	1/13/21	9,750		9,989
10	KazMunayGas National Co. JSC	6.375%	10/24/48	2,800		3,384
10	Kingdom of Saudi Arabia	2.375%	10/26/21	1,615		1,615
	Kingdom of Saudi Arabia	2.375%	10/26/21	71,255		71,276
10,13	Kingdom of Spain	2.700%	10/31/48	117,150		174,985
	Korea Development Bank	1.375%	9/12/19	19,715		19,699
	Korea Development Bank	4.625%	11/16/21	2,795		2,934
	Korea Development Bank	3.000%	3/19/22	12,145		12,329
	Korea Development Bank	3.250%	2/19/24	17,005		17,593
10	Korea Expressway Corp.	3.625%	10/22/21	7,780		7,970
	Korea Hydro & Nuclear Power Co. Ltd.	3.000%	9/19/22	11,764		11,927
	Korea Midland Power Co. Ltd.	2.500%	7/21/21	4,267		4,268
	Korea Midland Power Co. Ltd.	3.375%	1/22/22	12,435		12,684

33

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
10	Korea National Oil Corp.	2.875%	3/27/22	2,800		2,824
10	Korea Southern Power Co. Ltd.	3.000%	1/29/21	19,505		19,644
	KSA Sukuk Ltd.	2.894%	4/20/22	79,355		80,491
10	Nederlandse Waterschapsbank NV	1.250%	9/9/19	19,725		19,707
	North American Development Bank	2.400%	10/26/22	2,700		2,698
10	OCP SA	5.625%	4/25/24	7,800		8,492
10	Ontario Teachers’ Cadillac Fairview Properties Trust	3.125%	3/20/22	54,524		55,467
10	Ontario Teachers’ Cadillac Fairview Properties Trust	3.875%	3/20/27	6,000		6,382
	Perusahaan Penerbit SBSN Indonesia III	4.325%	5/28/25	5,225		5,545
	Perusahaan Penerbit SBSN Indonesia III	4.550%	3/29/26	4,350		4,682
	Perusahaan Penerbit SBSN Indonesia III	4.150%	3/29/27	9,765		10,327
	Petrobras Global Finance BV	8.750%	5/23/26	6,565		8,173
	Petrobras Global Finance BV	7.375%	1/17/27	2,611		3,084
	Petroleos Mexicanos	5.500%	1/21/21	224,619		229,707
	Petroleos Mexicanos	6.875%	8/4/26	33,842		34,399
	Petroleos Mexicanos	6.500%	3/13/27	20,570		20,413
	Petroleos Mexicanos	5.350%	2/12/28	3,380		3,106
	Petronas Capital Ltd.	5.250%	8/12/19	10,580		10,587
	Petronas Global Sukuk Ltd.	2.707%	3/18/20	2,050		2,051
	Province of Alberta	1.900%	12/6/19	24,370		24,336
	Province of Alberta	1.750%	8/26/20	1,300		1,294
10	Province of Alberta	1.750%	8/26/20	149,451		148,810
	Province of Nova Scotia	8.250%	7/30/22	12,785		14,888
	Province of Ontario	4.400%	4/14/20	25,595		25,969
	Province of Ontario	1.875%	5/21/20	9,770		9,741
	Province of Quebec	2.750%	8/25/21	16,785		17,024
4	Ras Laffan Liquefied Natural Gas Co. Ltd. II	5.298%	9/30/20	5,102		5,185
4,10	Ras Laffan Liquefied Natural Gas Co. Ltd. II	5.298%	9/30/20	1,616		1,640
	Republic of Colombia	4.375%	7/12/21	91,065		94,138
4	Republic of Colombia	2.625%	3/15/23	16,400		16,386
4	Republic of Colombia	4.500%	1/28/26	28,640		30,860
	Republic of Colombia	10.375%	1/28/33	2,501		3,914
	Republic of Croatia	6.750%	11/5/19	123,869		125,119
	Republic of Croatia	6.625%	7/14/20	18,770		19,470
	Republic of Croatia	6.375%	3/24/21	6,649		7,039
	Republic of Honduras	8.750%	12/16/20	35,522		37,977
	Republic of Hungary	6.250%	1/29/20	26,285		26,775
	Republic of Hungary	6.375%	3/29/21	101,720		108,152
	Republic of Hungary	5.375%	2/21/23	7,600		8,341
	Republic of Hungary	5.750%	11/22/23	6,939		7,832
	Republic of Indonesia	4.875%	5/5/21	28,504		29,631
10	Republic of Indonesia	3.700%	1/8/22	10,072		10,337
	Republic of Indonesia	3.750%	4/25/22	51,345		52,771
	Republic of Indonesia	5.875%	1/15/24	34,090		38,413
	Republic of Indonesia	4.125%	1/15/25	15,240		16,168
10	Republic of Latvia	2.750%	1/12/20	4,000		4,000
	Republic of Lithuania	7.375%	2/11/20	144,433		148,078
	Republic of Lithuania	6.125%	3/9/21	54,670		57,889
10	Republic of Lithuania	6.125%	3/9/21	8,205		8,684
	Republic of Lithuania	6.625%	2/1/22	16,400		18,105
	Republic of Panama	5.200%	1/30/20	43,704		44,247
4	Republic of Panama	4.000%	9/22/24	3,125		3,320
4	Republic of Panama	3.160%	1/23/30	12,900		12,964
	Republic of Poland	5.125%	4/21/21	22,315		23,403
	Republic of Poland	5.000%	3/23/22	46,710		50,020
	Republic of Romania	6.750%	2/7/22	2,672		2,930
	Republic of Romania	4.375%	8/22/23	8,750		9,261
13	Republic of Romania	2.000%	12/8/26	53,426		63,208
13	Republic of Romania	2.375%	4/19/27	1,621		1,947
10,13	Republic of Romania	2.124%	7/16/31	4,690		5,251
	Republic of Serbia	4.875%	2/25/20	16,916		17,101
	Republic of Serbia	7.250%	9/28/21	27,155		29,691
	Republic of Slovenia	5.500%	10/26/22	11,740		12,863
	Republic of Slovenia	5.850%	5/10/23	2,100		2,359

34

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
10	Republic of Slovenia	5.250%	2/18/24	8,600		9,648
	Republic of South Africa	5.500%	3/9/20	2,400		2,430
	Republic of South Africa	5.875%	9/16/25	14,505		15,737
7,11	SGSP Australia Assets Pty Ltd., 3M Australian Bank Bill Rate + 1.600%	2.781%	3/25/20	5,700		3,924
10	Sinopec Group Overseas Development 2013 Ltd.	4.375%	10/17/23	20,200		21,477
	Sinopec Group Overseas Development 2013 Ltd.	4.375%	10/17/23	31,428		33,476
	Sinopec Group Overseas Development 2014 Ltd.	4.375%	4/10/24	8,500		9,102
	Sinopec Group Overseas Development 2015 Ltd.	2.500%	4/28/20	4,800		4,796
10	Sinopec Group Overseas Development 2017 Ltd.	2.375%	4/12/20	35,215		35,175
	Sinopec Group Overseas Development 2017 Ltd.	2.500%	9/13/22	652		648
	Sinopec Group Overseas Development 2017 Ltd.	3.250%	9/13/27	19,300		19,632
	Slovak Republic	4.375%	5/21/22	3,000		3,165
10	Slovak Republic	4.375%	5/21/22	5,500		5,798
	Socialist Republic of Vietnam	6.750%	1/29/20	27,804		28,310
7	State Bank of India, 3M USD LIBOR + 0.950%	3.253%	4/6/20	42,900		42,993
	State Grid Overseas Investment 2014 Ltd.	4.125%	5/7/24	8,654		9,208
	State Grid Overseas Investment 2016 Ltd.	2.250%	5/4/20	2,800		2,793
	State Grid Overseas Investment 2016 Ltd.	3.750%	5/2/23	10,775		11,193
	State of Israel	3.150%	6/30/23	26,725		27,649
13	State of Israel	2.875%	1/29/24	2,710		3,384
13	State of Israel	1.500%	1/18/27	3,838		4,580
13	State of Israel	1.500%	1/16/29	15,190		18,246
	State of Kuwait	2.750%	3/20/22	42,883		43,342
	State of Qatar	4.000%	3/14/29	40,089		43,704
10	Temasek Financial I Ltd.	4.300%	10/25/19	7,250		7,280
10	Temasek Financial I Ltd.	2.375%	1/23/23	5,000		5,019
18	United Mexican States	8.000%	9/5/24	1,555,560		83,713
	United Mexican States	3.600%	1/30/25	2,600		2,666
	United Mexican States	4.125%	1/21/26	2,900		3,037
13	United Mexican States	1.625%	4/8/26	22,205		25,388
	United Mexican States	4.500%	4/22/29	14,745		15,678
Total Sovereign Bonds (Cost $3,743,774)						3,791,077
Taxable Municipal Bonds (0.1%)
	California Department of Water Resources Water System Revenue (Central Valley Project)	1.871%	12/1/19	255		255
	California GO	6.200%	10/1/19	13,650		13,741
	San Jose California Redevelopment Agency Successor Agency Tax Allocation	2.098%	8/1/19	16,589		16,589
Total Taxable Municipal Bonds (Cost $30,561)						30,585
				Shares
Convertible Preferred Stocks (0.0%)
§,14	Lehman Brothers Holdings Inc. Pfd. (Cost $28,924)	7.250%	Perpetual	29,160		—

35

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

							Market
							Value
		Coupon			Shares		($000	)
Temporary Cash Investments (1.7%)
Money Market Fund (0.6%)
19	Vanguard Market Liquidity Fund	2.386%			3,789,269		378,965
					Face
				Maturity	Amount
				Date	($000	)
Certificate of Deposit (0.4%)
	Cooperatieve Rabobank UA	1.980%		10/25/19	215,345		215,186
Commercial Paper (0.7%)
20	American Electric Power Co Inc.	2.515%		8/14/19	116,430		116,312
	Baker Hughes a GE Company LLC	2.535%		8/16/19	105,760		105,638
20	Enbridge US Inc.	2.587%		10/11/19	92,675		92,181
20	Fidelity National Information Services Inc.	2.556%		8/16/19	71,602		71,520
20	Molson Coors Brewing Co.	2.614%		8/5/19	44,130		44,114
							429,765
Total Temporary Cash Investments (Cost $1,024,072)							1,023,916
					Notional
					Amount on
					Underlying
			Expiration	Exercise	Swap
		Counterparty	Date	Rate	($000	)
Options Purchased (0.0%)
Over-the-Counter Swaptions (0.0%)
Call Swaptions
	10-Year Interest Rate Swap, Pays 3M LIBOR Quarterly, Receives 1.941% Semiannually	BNPSW	10/2/19	1.941%	62,680		533
	5-Year Interest Rate Swap, Pays 3M LIBOR Quarterly, Receives 1.857% Semiannually	DBAG	6/21/21	1.857%	125,360		2,154
	10-Year Interest Rate Swap, Pays 3M LIBOR Quarterly, Receives 1.916% Semiannually	GSCM	10/3/19	1.916%	156,700		1,184
	10-Year Interest Rate Swap, Pays 3M LIBOR Quarterly, Receives 2.035% Semiannually	JPMC	10/17/19	2.035%	62,680		895
							4,766
Put Swaptions
	10-Year Interest Rate Swap, Receives 3M LIBOR Quarterly, Pays 1.941% Semiannually	BNPSW	10/2/19	1.941%	62,680		569
	1-Year Interest Rate Swap, Receives 3M LIBOR Quarterly, Pays 2.260% Semiannually	CITNA	8/23/19	2.260%	629,270		53
	5-Year Interest Rate Swap, Receives 3M LIBOR Quarterly, Pays 1.857% Semiannually	DBAG	6/21/21	1.857%	125,360		1,932
	10-Year Interest Rate Swap, Receives 3M LIBOR Quarterly, Pays 1.916% Semiannually	GSCM	10/3/19	1.916%	156,700		1,633
	10-Year Interest Rate Swap, Receives 3M LIBOR Quarterly, Pays 2.035% Semiannually	JPMC	10/17/19	2.035%	62,680		393
	5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	BARC	8/21/19	0.600%	125,615		66

36

Vanguard® Short-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

					Notional
					Amount on
					Underlying	Market
			Expiration	Exercise	Swap	Value
		Counterparty	Date	Rate	($000)	($000	)
	5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	JPMC	9/18/19	0.700%	251,340	123
						4,769
Total Options Purchased (Cost $12,141)						9,535
Total Investments (99.5%) (Cost $59,390,623)						60,180,152
Other Assets and Liabilities—Net (0.5%)						314,382
Net Assets (100%)						60,494,534

§	Security value determined using significant unobservable inputs.
1	Securities with a value of $26,409,000 have been segregated as initial margin for open centrally cleared swap contracts.
2	Securities with a value of $5,576,000 have been segregated as collateral for open forward currency contracts and open over-the-counter swap contracts.
3	Securities with a value of $32,207,000 have been segregated as initial margin for open futures contracts.
4	The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.
5	Includes securities purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of July 31, 2019.
6	The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.
7	Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.
8	Inverse interest-only security.
9	Interest-only security.
10	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 July 31, 2019, the aggregate value of these securities was $11,870,080,000, representing 19.6% of net assets.
11	Face amount denominated in Australian dollars.
12	Face amount denominated in British pounds.
13	Face amount denominated in euro.
14	Non-income-producing security—security in default.
15	Scheduled principal and interest payments are guaranteed by Municipal Bond Insurance Association.
16	Guaranteed by multiple countries.
17	Guaranteed by the Government of Japan.
18	Face amount denominated in Mexican pesos.
19	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
20	Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration only to dealers in that program or other “accredited investors.” At July 31, 2019, the aggregate value of these securities was $324,127,000, representing 0.5% of net assets.
	BARC—Barclays Bank plc.
	BNPSW—BNP Paribas.
	CITNA—Citibank, N.A.
	CMT—Constant Maturing Treasury Rate.
	DBAG—Deutsche Bank AG.
	GO—General Obligation Bond.
	GSCM—Goldman Sachs Bank USA.
	JPMC—JPMorgan Chase Bank, N.A.
	LIBOR—London Interbank Offered Rate.
	REMICS—Real Estate Mortgage Investment Conduits.
	TBA—To Be Announced.

37

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
U.S. Government and Agency Obligations (5.8%)
U.S. Government Securities (5.6%)
	United States Treasury Inflation Indexed Bond	0.125%	1/15/23	565,000		622,055
	United States Treasury Note/Bond	2.625%	2/28/23	265,000		272,205
	United States Treasury Note/Bond	2.125%	3/31/24	6,000		6,076
1	United States Treasury Note/Bond	2.875%	4/30/25	400,000		421,752
	United States Treasury Note/Bond	2.875%	5/31/25	135,000		142,404
2	United States Treasury Note/Bond	2.250%	11/15/27	30,000		30,642
1	United States Treasury Note/Bond	2.750%	2/15/28	26,152		27,737
3	United States Treasury Note/Bond	2.875%	5/15/28	200,000		214,250
						1,737,121
Conventional Mortgage-Backed Securities (0.1%)
4,5	UMBS TBA	4.000%	7/1/49–8/1/49	18,385		19,037
Nonconventional Mortgage-Backed Securities (0.1%)
4,6,7,8	Fannie Mae REMICS, 6.200% - 1M USD LIBOR	3.934%	10/25/47	29,871		5,275
4,6,7	Freddie Mac Non Gold Pool, 12M USD LIBOR + 1.893%	4.643%	9/1/32	129		131
4,6,7	Freddie Mac Non Gold Pool, 1YR CMT + 2.250%	4.500%	8/1/32	210		217
4,6,7,8	Freddie Mac REMICS, 6.150% - 1M USD LIBOR	3.825%	1/15/42–1/15/45	22,209		3,555
4,6,7,8	Freddie Mac REMICS, 6.200% - 1M USD LIBOR	3.875%	12/15/47	11,426		2,093
4,9	Ginnie Mae REMICS	4.500%	1/20/48	347		61
4,7,8	Ginnie Mae REMICS, 5.650% - 1M USD LIBOR	3.378%	8/20/45	18,683		3,037
4,7,8	Ginnie Mae REMICS, 6.100% - 1M USD LIBOR	3.828%	9/20/46	14,119		2,916
4,7,8	Ginnie Mae REMICS, 6.200% - 1M USD LIBOR	3.929%	10/20/47–12/20/47	35,629		6,087
						23,372
Total U.S. Government and Agency Obligations (Cost $1,746,467)						1,779,530
Asset-Backed/Commercial Mortgage-Backed Securities (19.0%)
4	Ally Auto Receivables Trust 2018-1	2.530%	2/15/23	5,050		5,077
4	Ally Auto Receivables Trust 2019-1	3.020%	4/15/24	3,030		3,104
4	Ally Master Owner Trust Series 2018-2	3.290%	5/15/23	13,200		13,432
4	Ally Master Owner Trust Series 2018-2	3.300%	7/17/23	17,850		18,196
4	American Express Credit Account Master Trust 2019-1	2.870%	10/15/24	12,620		12,882
4,10	American Homes 4 Rent 2014-SFR2	3.786%	10/17/36	3,863		4,051
4,10	American Homes 4 Rent 2014-SFR2	4.290%	10/17/36	1,060		1,119
4,10	American Homes 4 Rent 2014-SFR3	3.678%	12/17/36	6,507		6,769
4,10	American Homes 4 Rent 2015-SFR1	3.467%	4/17/52	5,065		5,226
4,10	American Homes 4 Rent 2015-SFR2	3.732%	10/17/52	2,736		2,857
4,10	American Homes 4 Rent 2015-SFR2	4.295%	10/17/52	1,070		1,141
4,10	American Tower Trust #1	3.652%	3/23/28	5,300		5,531
4,10	Americold 2010 LLC Trust Series 2010-ARTA	4.954%	1/14/29	6,402		6,646
4,10	Americold 2010 LLC Trust Series 2010-ARTA	6.811%	1/14/29	3,540		3,765
4	AmeriCredit Automobile Receivables Trust 2016-1	3.590%	2/8/22	2,980		3,010
4	AmeriCredit Automobile Receivables Trust 2016-2	3.650%	5/9/22	3,280		3,319
4	AmeriCredit Automobile Receivables Trust 2016-3	2.710%	9/8/22	3,390		3,404
4	AmeriCredit Automobile Receivables Trust 2018-2	4.010%	7/18/24	9,460		9,789
4	AmeriCredit Automobile Receivables Trust 2019-1	3.620%	3/18/25	7,240		7,427
4,10	AOA Mortgage Trust 2015-1177	2.957%	12/13/29	1,330		1,341
4,10	Applebee’s Funding LLC/IHOP Funding LLC 2019-1	4.194%	6/7/49	2,260		2,289
4,10	ARL Second LLC 2014-1A	2.920%	6/15/44	4,363		4,372
4,10	Aventura Mall Trust 2013-AVM	3.743%	12/5/32	1,482		1,514
4,10	Aventura Mall Trust 2018-AVM	4.112%	7/5/40	36,180		39,926
4,10	Avis Budget Rental Car Funding AESOP LLC 2015-1A	2.500%	7/20/21	7,140		7,140
4,10	Avis Budget Rental Car Funding AESOP LLC 2015-2A	2.630%	12/20/21	15,725		15,750
4,10	Avis Budget Rental Car Funding AESOP LLC 2016-1A	2.990%	6/20/22	1,540		1,553
4,10	Avis Budget Rental Car Funding AESOP LLC 2017-1A	3.070%	9/20/23	4,220		4,284
4,10	Avis Budget Rental Car Funding AESOP LLC 2017-2A	2.970%	3/20/24	4,770		4,836
4,10	Avis Budget Rental Car Funding AESOP LLC 2018-1A	3.700%	9/20/24	2,320		2,419
4,10	Avis Budget Rental Car Funding AESOP LLC 2018-1A	4.730%	9/20/24	1,110		1,163
4,10	Avis Budget Rental Car Funding AESOP LLC 2018-2A	4.000%	3/20/25	9,270		9,799
4,10	Avis Budget Rental Car Funding AESOP LLC 2019-1A	3.450%	3/20/23	6,790		6,946

38

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4,10	BAMLL Commercial Mortgage Securities Trust 2012-PARK	2.959%	12/10/30	4,975		5,103
4	Banc of America Commercial Mortgage Trust 2015-UBS7	3.429%	9/15/48	3,350		3,491
4	Banc of America Commercial Mortgage Trust 2015-UBS7	3.705%	9/15/48	3,916		4,176
4	Banc of America Commercial Mortgage Trust 2015-UBS7	4.361%	9/15/48	360		379
4	Banc of America Commercial Mortgage Trust 2017-BNK3	3.574%	2/15/50	1,540		1,638
4	BANK 2017 - BNK4	3.625%	5/15/50	3,461		3,698
4	BANK 2017 - BNK5	3.390%	6/15/60	3,620		3,813
4	BANK 2017 - BNK6	3.254%	7/15/60	4,640		4,861
4	BANK 2017 - BNK6	3.518%	7/15/60	5,760		6,117
4	BANK 2017 - BNK6	3.741%	7/15/60	1,310		1,370
4	BANK 2017 - BNK7	3.435%	9/15/60	5,490		5,798
4	BANK 2017 - BNK8	3.488%	11/15/50	11,570		12,270
4	BANK 2017 - BNK9	3.538%	11/15/54	8,940		9,503
4	BANK 2018 - BN10	3.641%	2/15/61	4,430		4,717
4	BANK 2018 - BN10	3.688%	2/15/61	11,760		12,639
4	BANK 2018 - BN12	4.255%	5/15/61	3,960		4,433
4	BANK 2018 - BN13	4.217%	8/15/61	2,160		2,420
4	BANK 2018 - BN14	4.185%	9/15/60	2,205		2,423
4	BANK 2018 - BN14	4.231%	9/15/60	10,850		12,153
4	BANK 2018 - BN15	4.407%	11/15/61	16,127		18,358
4	BANK 2019 - BN17	3.623%	4/15/52	1,437		1,538
4	BANK 2019 - BN17	3.714%	4/15/52	6,104		6,594
4	BANK 2019 - BN18	3.584%	5/15/62	6,590		7,073
4	BANK 2019 - BN19	3.183%	8/15/61	5,100		5,279
4	BENCHMARK 2018-B1 Mortgage Trust	3.602%	1/15/51	2,910		3,082
4	BENCHMARK 2018-B1 Mortgage Trust	3.666%	1/15/51	6,570		7,036
4	BENCHMARK 2018-B1 Mortgage Trust	3.878%	1/15/51	2,350		2,515
4	BENCHMARK 2018-B1 Mortgage Trust	4.059%	1/15/51	6,320		6,747
4	BENCHMARK 2018-B1 Mortgage Trust	4.118%	1/15/51	9,810		10,381
4	BENCHMARK 2018-B2 Mortgage Trust	3.882%	2/15/51	15,590		16,944
4	BENCHMARK 2018-B3 Mortgage Trust	4.025%	4/10/51	7,230		7,961
4	BENCHMARK 2018-B5 Mortgage Trust	4.208%	7/15/51	5,920		6,607
4	BENCHMARK 2018-B6 Mortgage Trust	4.170%	10/10/51	3,047		3,339
4	BENCHMARK 2018-B6 Mortgage Trust	4.261%	10/10/51	12,270		13,801
4	BENCHMARK 2018-B8 Mortgage Trust	4.232%	1/15/52	14,394		16,143
4	BENCHMARK 2019-B10 Mortgage Trust	3.615%	3/15/62	1,532		1,637
4	BMW Vehicle Owner Trust 2018-A	2.510%	6/25/24	4,010		4,035
4,7	Brazos Higher Education Authority Inc. Series 2005-3, 3M USD LIBOR + 0.200%	2.549%	6/25/26	2,280		2,271
4,7	Brazos Higher Education Authority Inc. Series 2011-1, 3M USD LIBOR + 0.800%	3.321%	2/25/30	4,684		4,689
4,10	CAL Funding II Ltd. Series 2012-1A	3.470%	10/25/27	813		815
4,10	CAL Funding II Ltd. Series 2013-1A	3.350%	3/27/28	1,302		1,300
4,10	CAL Funding II Ltd. Series 2018-2A	4.340%	9/25/43	6,499		6,595
4,10	California Republic Auto Receivables Trust 2015-4	2.580%	6/15/21	1,605		1,606
4	California Republic Auto Receivables Trust 2016-1	3.430%	2/15/22	8,000		8,040
4	California Republic Auto Receivables Trust 2016-1	4.560%	12/15/22	8,320		8,416
4	California Republic Auto Receivables Trust 2016-2	1.830%	12/15/21	1,354		1,350
4	California Republic Auto Receivables Trust 2016-2	2.520%	5/16/22	1,120		1,121
4	California Republic Auto Receivables Trust 2016-2	3.510%	3/15/23	540		542
4,10	Canadian Pacer Auto Receivables Trust A Series 2017	2.050%	3/19/21	3,066		3,062
4,10	Canadian Pacer Auto Receivables Trust A Series 2017	2.286%	1/19/22	3,450		3,437
4,10	Canadian Pacer Auto Receivables Trust A Series 2018	3.220%	9/19/22	3,310		3,345
4,10	Canadian Pacer Auto Receivables Trust A Series 2019	2.960%	6/19/24	2,090		2,133
4,10	Canadian Pacer Auto Receiveable Trust A Series 2018	3.270%	12/19/22	2,880		2,910
4,10	Canadian Pacer Auto Receiveable Trust A Series 2018	3.440%	8/21/23	1,280		1,311
4	Capital Auto Receivables Asset Trust 2015-3	2.900%	12/21/20	1,370		1,371
4	Capital Auto Receivables Asset Trust 2016-2	3.160%	11/20/23	360		361
4	Capital Auto Receivables Asset Trust 2016-3	2.350%	9/20/21	1,630		1,626

39

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Capital Auto Receivables Asset Trust 2016-3	2.650%	1/20/24	900		901
4,10	Capital Auto Receivables Asset Trust 2017-1	2.020%	8/20/21	3,902		3,895
4	Capital One Auto Receivables Trust 2019-1	2.510%	11/15/23	17,460		17,627
4	Capital One Auto Receivables Trust 2019-1	2.560%	10/15/24	5,890		5,974
4	Capital One Multi-Asset Execution Trust 2019-A1	2.840%	12/15/24	39,460		40,191
4,10	CARDS II Trust 2018-2A	3.047%	4/17/23	8,050		8,080
4	CarMax Auto Owner Trust 2015-3	2.280%	4/15/21	1,945		1,944
4	CarMax Auto Owner Trust 2015-3	2.680%	6/15/21	2,795		2,797
4	CarMax Auto Owner Trust 2016-2	2.160%	12/15/21	1,930		1,925
4	CarMax Auto Owner Trust 2016-2	3.250%	11/15/22	2,160		2,165
4	CarMax Auto Owner Trust 2016-3	2.200%	6/15/22	1,930		1,924
4	CarMax Auto Owner Trust 2016-3	2.940%	1/17/23	1,360		1,360
4	CarMax Auto Owner Trust 2017-4	2.330%	5/15/23	3,460		3,475
4	CarMax Auto Owner Trust 2017-4	2.460%	8/15/23	1,640		1,644
4	CarMax Auto Owner Trust 2017-4	2.700%	10/16/23	1,640		1,638
4	CarMax Auto Owner Trust 2018-1	2.480%	11/15/22	19,230		19,292
4	CarMax Auto Owner Trust 2018-1	2.640%	6/15/23	3,040		3,077
4	CarMax Auto Owner Trust 2018-1	2.830%	9/15/23	5,020		5,083
4	CarMax Auto Owner Trust 2018-1	2.950%	11/15/23	1,560		1,566
4	CarMax Auto Owner Trust 2018-2	3.370%	10/16/23	2,140		2,200
4	CarMax Auto Owner Trust 2018-2	3.570%	12/15/23	3,090		3,174
4	CarMax Auto Owner Trust 2018-2	3.990%	4/15/25	2,390		2,450
4	CarMax Auto Owner Trust 2018-3	3.130%	6/15/23	13,490		13,693
4	CarMax Auto Owner Trust 2018-3	3.270%	3/15/24	6,740		6,960
4	CarMax Auto Owner Trust 2018-4	3.360%	9/15/23	9,160		9,371
4	CarMax Auto Owner Trust 2018-4	3.480%	2/15/24	3,370		3,507
4	CarMax Auto Owner Trust 2018-4	3.670%	5/15/24	2,960		3,084
4	CarMax Auto Owner Trust 2018-4	3.850%	7/15/24	2,010		2,093
4	CarMax Auto Owner Trust 2018-4	4.150%	4/15/25	1,360		1,416
§,4	CarMax Auto Owner Trust 2019-3	2.300%	4/15/25	4,760		4,758
§,4	CarMax Auto Owner Trust 2019-3	2.500%	4/15/25	6,040		6,038
4	CD 2016-CD1 Commercial Mortgage Trust	2.724%	8/10/49	18,170		18,339
4	CD 2016-CD1 Commercial Mortgage Trust	3.631%	8/10/49	5,510		5,599
4	CD 2017-CD3 Commercial Mortgage Trust	3.631%	2/10/50	9,965		10,657
4	CD 2017-CD4 Commercial Mortgage Trust	3.514%	5/10/50	4,990		5,296
4	CD 2017-CD5 Commercial Mortgage Trust	3.431%	8/15/50	6,290		6,636
4	CD 2017-CD6 Commercial Mortgage Trust	3.456%	11/13/50	2,341		2,473
4,10	CFCRE Commercial Mortgage Trust 2011-C2	5.748%	12/15/47	5,260		5,587
4	CFCRE Commercial Mortgage Trust 2016-C4	3.283%	5/10/58	4,826		5,008
4,10	Chesapeake Funding II LLC 2018-1	3.040%	4/15/30	9,904		9,984
4,10	Chesapeake Funding II LLC 2019-1	2.940%	4/15/31	16,902		17,090
4,10	Chrysler Capital Auto Receivables Trust 2015-BA	3.260%	4/15/21	1,983		1,984
4,10	Chrysler Capital Auto Receivables Trust 2015-BA	4.170%	1/16/23	5,510		5,533
4,10	Chrysler Capital Auto Receivables Trust 2016-AA	2.880%	6/15/22	1,704		1,704
4,10	Chrysler Capital Auto Receivables Trust 2016-AA	4.220%	2/15/23	8,530		8,613
4,10	Chrysler Capital Auto Receivables Trust 2016-BA	1.640%	7/15/21	732		731
4,10	Chrysler Capital Auto Receivables Trust 2016-BA	1.870%	2/15/22	4,680		4,664
4	Citibank Credit Card Issuance Trust 2018-A1	2.490%	1/20/23	19,850		19,960
4,10	Citigroup Commercial Mortgage Trust 2012-GC8	3.683%	9/10/45	2,017		2,077
4	Citigroup Commercial Mortgage Trust 2013-GC11	3.093%	4/10/46	6,015		6,178
4	Citigroup Commercial Mortgage Trust 2013-GC15	3.942%	9/10/46	738		762
4	Citigroup Commercial Mortgage Trust 2013-GC15	4.371%	9/10/46	1,910		2,056
4	Citigroup Commercial Mortgage Trust 2014-GC19	3.753%	3/10/47	491		517
4	Citigroup Commercial Mortgage Trust 2014-GC19	4.023%	3/10/47	16,273		17,376
4	Citigroup Commercial Mortgage Trust 2014-GC21	3.575%	5/10/47	14,095		14,805
4	Citigroup Commercial Mortgage Trust 2014-GC21	3.855%	5/10/47	9,060		9,631
4	Citigroup Commercial Mortgage Trust 2014-GC23	3.622%	7/10/47	8,949		9,453
4	Citigroup Commercial Mortgage Trust 2014-GC23	3.863%	7/10/47	2,020		2,128
4	Citigroup Commercial Mortgage Trust 2014-GC23	4.175%	7/10/47	800		826
4	Citigroup Commercial Mortgage Trust 2014-GC23	4.441%	7/10/47	1,250		1,316
4	Citigroup Commercial Mortgage Trust 2014-GC25	3.372%	10/10/47	4,729		4,931
4	Citigroup Commercial Mortgage Trust 2014-GC25	3.635%	10/10/47	13,083		13,836
4	Citigroup Commercial Mortgage Trust 2014-GC25	4.345%	10/10/47	2,170		2,299
4	Citigroup Commercial Mortgage Trust 2014-GC25	4.527%	10/10/47	3,270		3,472

40

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Citigroup Commercial Mortgage Trust 2015-GC27	3.137%	2/10/48	6,418		6,638
4	Citigroup Commercial Mortgage Trust 2015-GC31	3.762%	6/10/48	38,770		41,363
4	Citigroup Commercial Mortgage Trust 2015-GC33	3.778%	9/10/58	23,737		25,412
4	Citigroup Commercial Mortgage Trust 2015-GC33	4.569%	9/10/58	900		948
4	Citigroup Commercial Mortgage Trust 2016-C1	3.209%	5/10/49	9,456		9,832
4	Citigroup Commercial Mortgage Trust 2016-P4	2.902%	7/10/49	19,310		19,718
4	Citigroup Commercial Mortgage Trust 2017-C4	3.471%	10/12/50	6,425		6,804
4	Citigroup Commercial Mortgage Trust 2017-P8	3.465%	9/15/50	13,370		14,166
4	Citigroup Commercial Mortgage Trust 2017-P8	4.192%	9/15/50	3,150		3,348
4	Citigroup Commercial Mortgage Trust 2017-P8	4.270%	9/15/50	3,150		3,245
4	Citigroup Commercial Mortgage Trust 2018-C5	4.228%	6/10/51	900		1,006
4	Citigroup Commercial Mortgage Trust 2018-C6	4.343%	11/10/51	7,300		8,118
4	Citigroup Commercial Mortgage Trust 2018-C6	4.412%	11/10/51	16,880		19,171
4,10	CLI Funding V LLC 2013-1A	2.830%	3/18/28	1,954		1,942
4	COMM 2012-CCRE2 Mortgage Trust	3.147%	8/15/45	2,971		3,039
4	COMM 2012-CCRE2 Mortgage Trust	3.791%	8/15/45	3,900		4,020
4	COMM 2012-CCRE3 Mortgage Trust	2.822%	10/15/45	6,628		6,714
4,10	COMM 2012-CCRE3 Mortgage Trust	3.416%	10/15/45	6,160		6,290
4	COMM 2012-CCRE4 Mortgage Trust	2.853%	10/15/45	6,899		6,997
4	COMM 2012-CCRE4 Mortgage Trust	3.251%	10/15/45	420		424
4	COMM 2012-CCRE5 Mortgage Trust	2.771%	12/10/45	2,919		2,959
4,10	COMM 2013-300P Mortgage Trust	4.353%	8/10/30	12,270		13,217
4	COMM 2013-CCRE10 Mortgage Trust	3.795%	8/10/46	661		682
4	COMM 2013-CCRE11 Mortgage Trust	3.983%	8/10/50	4,875		5,194
4	COMM 2013-CCRE11 Mortgage Trust	4.258%	8/10/50	4,757		5,104
4	COMM 2013-CCRE12 Mortgage Trust	3.623%	10/10/46	1,511		1,557
4	COMM 2013-CCRE12 Mortgage Trust	3.765%	10/10/46	5,860		6,143
4	COMM 2013-CCRE12 Mortgage Trust	4.046%	10/10/46	13,048		13,861
4	COMM 2013-CCRE13 Mortgage Trust	4.194%	11/10/46	23,397		25,079
4	COMM 2013-CCRE13 Mortgage Trust	4.898%	11/10/46	855		928
4	COMM 2013-CCRE13 Mortgage Trust	4.898%	11/10/46	3,025		3,221
4,10	COMM 2013-CCRE6 Mortgage Trust	3.147%	3/10/46	9,240		9,421
4,10	COMM 2013-CCRE6 Mortgage Trust	3.397%	3/10/46	1,400		1,430
4	COMM 2013-CCRE8 Mortgage Trust	3.334%	6/10/46	649		668
4	COMM 2013-CCRE8 Mortgage Trust	3.612%	6/10/46	8,560		8,947
4	COMM 2013-CCRE9 Mortgage Trust	4.232%	7/10/45	5,388		5,766
4,10	COMM 2013-CCRE9 Mortgage Trust	4.255%	7/10/45	2,780		2,741
4,10	COMM 2013-LC13 Mortgage Trust	3.774%	8/10/46	1,108		1,142
4	COMM 2013-LC13 Mortgage Trust	4.205%	8/10/46	585		625
4	COMM 2013-LC6 Mortgage Trust	2.941%	1/10/46	3,883		3,958
4,10	COMM 2013-SFS Mortgage Trust	2.987%	4/12/35	6,702		6,784
4,10	COMM 2014-277P Mortgage Trust	3.611%	8/10/49	18,320		19,413
4	COMM 2014-CCRE14 Mortgage Trust	3.955%	2/10/47	500		531
4	COMM 2014-CCRE14 Mortgage Trust	4.236%	2/10/47	4,932		5,301
4	COMM 2014-CCRE15 Mortgage Trust	2.928%	2/10/47	487		487
4	COMM 2014-CCRE15 Mortgage Trust	4.074%	2/10/47	4,350		4,650
4	COMM 2014-CCRE15 Mortgage Trust	4.426%	2/10/47	1,300		1,390
4	COMM 2014-CCRE17 Mortgage Trust	3.700%	5/10/47	1,010		1,062
4	COMM 2014-CCRE17 Mortgage Trust	3.977%	5/10/47	6,335		6,774
4	COMM 2014-CCRE17 Mortgage Trust	4.174%	5/10/47	1,290		1,377
4	COMM 2014-CCRE17 Mortgage Trust	4.786%	5/10/47	4,400		4,636
4	COMM 2014-CCRE18 Mortgage Trust	3.550%	7/15/47	6,260		6,546
4	COMM 2014-CCRE18 Mortgage Trust	3.828%	7/15/47	10,820		11,506
4	COMM 2014-CCRE20 Mortgage Trust	3.326%	11/10/47	5,200		5,423
4	COMM 2014-CCRE20 Mortgage Trust	3.590%	11/10/47	15,433		16,274
4	COMM 2014-CCRE21 Mortgage Trust	3.528%	12/10/47	22,437		23,478
4	COMM 2014-LC17 Mortgage Trust	3.917%	10/10/47	2,438		2,609
4	COMM 2015-CCRE24 Mortgage Trust	3.696%	8/10/48	2,465		2,626
4	COMM 2015-CCRE25 Mortgage Trust	3.759%	8/10/48	4,100		4,377
4	COMM 2015-CCRE27 Mortgage Trust	3.612%	10/10/48	3,748		3,976
4	COMM 2015-CCRE27 Mortgage Trust	4.471%	10/10/48	1,760		1,864
4	COMM 2015-LC19 Mortgage Trust	3.183%	2/10/48	7,183		7,441
4,10	Core Industrial Trust 2015-TEXW	3.077%	2/10/34	5,538		5,645
4	CSAIL 2015-C2 Commercial Mortgage Trust	3.504%	6/15/57	6,650		6,985

41

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	CSAIL 2015-C3 Commercial Mortgage Trust	3.718%	8/15/48	6,150		6,532
4	CSAIL 2015-C3 Commercial Mortgage Trust	4.355%	8/15/48	2,160		2,104
4	CSAIL 2015-C4 Commercial Mortgage Trust	3.808%	11/15/48	11,120		11,900
4	CSAIL 2016-C5 Commercial Mortgage Trust	4.536%	11/15/48	3,620		3,851
4	CSAIL 2016-C7 Commercial Mortgage Trust	3.502%	11/15/49	17,160		18,004
4	CSAIL 2017-C8 Commercial Mortgage Trust	3.392%	6/15/50	6,995		7,324
4	CSAIL 2018-CX12 Commercial Mortgage Trust	4.224%	8/15/51	12,490		13,867
4	CSAIL 2019-C15 Commercial Mortgage Trust	4.053%	3/15/52	5,600		6,162
4,10	Daimler Trucks Retail Trust 2018-1	3.030%	11/15/24	7,290		7,349
4,10	Daimler Trucks Retail Trust 2019-1	2.790%	5/15/25	5,700		5,777
4	DBGS Mortgage Trust 2018-C1	4.466%	10/15/51	17,800		20,234
4	DBJPM 16-C1 Mortgage Trust	3.343%	5/10/49	1,250		1,240
4	DBJPM 17-C6 Mortgage Trust	3.328%	6/10/50	9,800		10,277
4,7,10	DELAM 2018-1, 1M USD LIBOR + 0.700%	2.998%	11/19/25	10,290		10,301
4,10	Dell Equipment Finance Trust 2019-1	2.830%	3/22/24	15,220		15,358
4	Discover Card Execution Note Trust 2019-A1	3.040%	7/15/24	15,220		15,567
4,10	DLL Securitization Trust Series 2018-A3	3.460%	1/20/22	18,240		18,466
4,10	DLL Securitization Trust Series 2018-A4	3.590%	6/20/24	4,400		4,516
4,10	DLL Securitization Trust Series 2019-DA1	2.890%	4/20/23	14,950		15,085
4,10	DLL Securitization Trust Series 2019-DA1	2.920%	4/20/27	10,910		11,083
4,10	DRB Prime Student Loan Trust 2017-C	2.810%	11/25/42	12,710		12,849
4,10	Drive Auto Receivables Trust 2015-BA	3.840%	7/15/21	978		979
4,10	Drive Auto Receivables Trust 2015-CA	4.200%	9/15/21	1,702		1,706
4,10	Drive Auto Receivables Trust 2015-DA	4.590%	1/17/23	7,483		7,552
4,10	Drive Auto Receivables Trust 2016-BA	4.530%	8/15/23	10,638		10,771
4,10	Drive Auto Receivables Trust 2016-C	4.180%	3/15/24	10,540		10,718
4	Drive Auto Receivables Trust 2017-1	3.840%	3/15/23	1,640		1,657
4	Drive Auto Receivables Trust 2017-3	2.800%	7/15/22	3,183		3,187
4	Drive Auto Receivables Trust 2018-2	3.220%	4/15/22	5,830		5,839
4	Drive Auto Receivables Trust 2018-2	3.630%	8/15/24	12,200		12,286
4	Drive Auto Receivables Trust 2018-2	4.140%	8/15/24	8,560		8,761
4	Drive Auto Receivables Trust 2018-3	3.370%	9/15/22	15,440		15,479
4	Drive Auto Receivables Trust 2018-3	3.720%	9/16/24	15,170		15,340
4	Drive Auto Receivables Trust 2018-3	4.300%	9/16/24	8,070		8,314
4	Drive Auto Receivables Trust 2018-5	3.680%	7/15/23	10,250		10,419
4	Drive Auto Receivables Trust 2018-5	3.990%	1/15/25	9,780		10,066
4	Drive Auto Receivables Trust 2018-5	4.300%	4/15/26	13,430		13,897
4	Drive Auto Receivables Trust 2019-2	3.040%	3/15/23	5,820		5,865
4	Drive Auto Receivables Trust 2019-2	3.690%	8/17/26	5,630		5,775
4,7,10	Edsouth Indenture No. 9 LLC 2015-1, 1M USD LIBOR + 0.800%	3.066%	10/25/56	5,234		5,193
4,10	EDvestinU Private Education Loan Trust (EDVES) 2019-A	3.580%	11/25/38	4,170		4,265
4,10	ELFI Graduate Loan Program 2018-A LLC	3.430%	8/25/42	10,287		10,538
4,10	Enterprise Fleet Financing LLC Series 2016-1	2.080%	9/20/21	7,199		7,184
4,10	Enterprise Fleet Financing LLC Series 2018-3	3.380%	5/20/24	8,160		8,247
4,10	Enterprise Fleet Financing LLC Series 2019-1	2.980%	10/22/24	3,430		3,465
4,10	Enterprise Fleet Financing LLC Series 2019-1	3.070%	10/22/24	4,970		5,074
4,6,7	Fannie Mae Connecticut Avenue Securities 2016-C04, 1M USD LIBOR + 1.450%	3.716%	1/25/29	436		437
4,6,7,10	Fannie Mae Connecticut Avenue Securities 2019-R03, 1M USD LIBOR + 0.750%	3.016%	9/25/31	8,900		8,909
4,6,7,10	Fannie Mae Connecticut Avenue Securities 2019-R04, 1M USD LIBOR + 0.750%	3.016%	6/25/39	10,504		10,519
4,6	Fannie Mae Grantor Trust 2017-T1	2.898%	6/25/27	10,255		10,483
4,7	First National Master Note Trust 2017-2, 1M USD LIBOR + 0.440%	2.765%	10/16/23	9,120		9,129
4,10	Flagship Credit Auto Trust 2018-1	3.410%	5/15/23	5,083		5,138
4	Ford Credit Auto Lease Trust 2018-A	3.050%	8/15/21	2,860		2,884
4	Ford Credit Auto Lease Trust 2018-A	3.170%	9/15/21	5,150		5,191
4	Ford Credit Auto Lease Trust 2018-B	3.190%	12/15/21	17,360		17,524
4	Ford Credit Auto Lease Trust 2019-A	2.900%	5/15/22	13,420		13,545
4	Ford Credit Auto Lease Trust 2019-A	3.250%	7/15/22	8,470		8,580
4,10	Ford Credit Auto Owner Trust 2014-REV2	2.510%	4/15/26	2,160		2,160

42

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4,10	Ford Credit Auto Owner Trust 2015-REV2	2.440%	1/15/27	26,000		26,014
4	Ford Credit Auto Owner Trust 2016-B	1.850%	9/15/21	2,430		2,425
4,10	Ford Credit Auto Owner Trust 2016-REV1	2.310%	8/15/27	13,820		13,809
4,10	Ford Credit Auto Owner Trust 2016-REV2	2.030%	12/15/27	13,310		13,265
4,10	Ford Credit Auto Owner Trust 2017-1	2.620%	8/15/28	24,010		24,230
4,10	Ford Credit Auto Owner Trust 2017-2	2.360%	3/15/29	28,030		28,050
4,10	Ford Credit Auto Owner Trust 2017-2	2.600%	3/15/29	4,800		4,810
4,10	Ford Credit Auto Owner Trust 2017-2	2.750%	3/15/29	9,830		9,856
4,10	Ford Credit Auto Owner Trust 2018-2	3.760%	1/15/30	3,660		3,778
4	Ford Credit Auto Owner Trust 2018-A	3.030%	11/15/22	16,310		16,475
4	Ford Credit Auto Owner Trust 2018-B	3.380%	3/15/24	6,360		6,535
4,10	Ford Credit Auto Owner Trust 2018-REV1	3.190%	7/15/31	22,190		22,835
4,10	Ford Credit Auto Owner Trust 2018-REV1	3.340%	7/15/31	7,010		7,094
4,10	Ford Credit Auto Owner Trust 2018-REV2	3.470%	1/15/30	13,500		14,054
4,10	Ford Credit Auto Owner Trust 2018-REV2	3.610%	1/15/30	8,140		8,372
4,10	Ford Credit Auto Owner Trust 2019-1	3.520%	7/15/30	11,640		12,114
4	Ford Credit Auto Owner Trust 2019-A	2.850%	8/15/24	11,040		11,264
4	Ford Credit Auto Owner Trust 2019-A	3.020%	10/15/24	4,250		4,342
4	Ford Credit Auto Owner Trust 2019-A	3.250%	9/15/25	4,520		4,617
4	Ford Credit Floorplan Master Owner Trust A Series 2015-5	2.390%	8/15/22	8,480		8,490
4	Ford Credit Floorplan Master Owner Trust A Series 2017-1	2.070%	5/15/22	56,020		55,906
4	Ford Credit Floorplan Master Owner Trust A Series 2017-2	2.160%	9/15/22	37,850		37,794
4	Ford Credit Floorplan Master Owner Trust A Series 2018-1	2.950%	5/15/23	27,090		27,429
4	Ford Credit Floorplan Master Owner Trust A Series 2018-3	3.520%	10/15/23	26,880		27,590
4	Ford Credit Floorplan Master Owner Trust A Series 2019-1	2.840%	3/15/24	19,500		19,801
4	Ford Credit Floorplan Master Owner Trust A Series 2019-2	3.060%	4/15/26	2,660		2,742
4	Ford Credit Floorplan Master Owner Trust A Series 2019-2	3.250%	4/15/26	3,330		3,410
4,6,7,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA2, 1M USD LIBOR + 0.800%	3.066%	3/25/49	1,368		1,371
4,6,7	Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA2, 1M USD LIBOR + 2.200%	4.466%	10/25/28	172		172
4,6,7	Freddie Mac Structured Agency Credit Risk Debt Notes 2016-DNA3, 1M USD LIBOR + 2.000%	4.266%	12/25/28	1,221		1,227
4,6,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2018-SPI1	3.742%	2/25/48	4,791		4,837
4,6,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2018-SPI2	3.817%	5/25/48	3,687		3,709
4,6,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2018-SPI3	4.163%	8/25/48	2,787		2,811
4,6,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2018-SPI4	4.460%	11/25/48	3,630		3,654
4,6,7,10	Freddie Mac Structured Agency Credit Risk Debt Notes 2019-HQA2, 1M USD LIBOR + 0.700%	2.966%	4/25/49	7,700		7,709
4	GM Financial Automobile Leasing Trust 2017-3	2.010%	11/20/20	4,674		4,670
4	GM Financial Automobile Leasing Trust 2017-3	2.120%	9/20/21	3,290		3,286
4	GM Financial Automobile Leasing Trust 2017-3	2.400%	9/20/21	4,120		4,118
4	GM Financial Automobile Leasing Trust 2017-3	2.730%	9/20/21	2,240		2,240
4	GM Financial Automobile Leasing Trust 2018-2	3.060%	6/21/21	13,160		13,216
4	GM Financial Automobile Leasing Trust 2018-3	3.180%	6/21/21	12,460		12,556
4,10	GM Financial Consumer Automobile 2017-3	2.330%	3/16/23	1,640		1,641
4	GM Financial Consumer Automobile 2018-3	3.160%	1/16/24	3,690		3,807
4	GM Financial Consumer Automobile 2018-4	3.320%	6/17/24	4,120		4,270
4	GM Financial Consumer Automobile 2019-1	3.110%	7/16/24	5,320		5,469
4	GM Financial Consumer Automobile 2019-2	2.710%	8/16/24	6,740		6,862
4,10	GMF Floorplan Owner Revolving Trust 2017-2	2.130%	7/15/22	42,410		42,329
4,10	GMF Floorplan Owner Revolving Trust 2017-2	2.440%	7/15/22	13,200		13,183

43

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4,10	GMF Floorplan Owner Revolving Trust 2017-2	2.630%	7/15/22	7,240		7,237
4,10	GMF Floorplan Owner Revolving Trust 2018-2	3.130%	3/15/23	19,810		20,083
4,10	GMF Floorplan Owner Revolving Trust 2019-1	2.700%	4/15/24	5,900		5,948
4,10	Golden Credit Card Trust 2016-5A	1.600%	9/15/21	16,340		16,321
4,10	Golden Credit Card Trust 2018-1A	2.620%	1/15/23	58,610		58,958
4,10	Golden Credit Card Trust 2018-4A	3.440%	10/15/25	47,560		49,420
4,7,10	Gosforth Funding 2018-1A plc, 3M USD LIBOR + 0.450%	2.971%	8/25/60	6,294		6,282
4,10	GRACE Mortgage Trust 2014-A	3.369%	6/10/28	1,000		1,017
4,10	GreatAmerica Leasing Receivables Funding LLC Series 2016-1	1.990%	4/20/22	4,627		4,618
4,10	GreatAmerica Leasing Receivables Funding LLC Series 2018-1	2.830%	6/17/24	1,310		1,319
4,10	GreatAmerica Leasing Receivables Funding LLC Series 2019-1	3.210%	2/18/25	2,540		2,601
4,10	GS Mortgage Securities Corporation Trust 2012-ALOHA	3.551%	4/10/34	5,430		5,586
4,10	GS Mortgage Securities Trust 2010-C2	5.180%	12/10/43	1,370		1,413
4,10	GS Mortgage Securities Trust 2011-GC3	5.637%	3/10/44	2,650		2,755
4,10	GS Mortgage Securities Trust 2012-BWTR	2.954%	11/5/34	7,625		7,762
4,10	GS Mortgage Securities Trust 2012-GC6	4.948%	1/10/45	1,025		1,079
4	GS Mortgage Securities Trust 2012-GCJ7	5.686%	5/10/45	2,140		2,258
4	GS Mortgage Securities Trust 2013-GC13	4.050%	7/10/46	185		198
4,10	GS Mortgage Securities Trust 2013-GC13	4.083%	7/10/46	1,210		1,256
4	GS Mortgage Securities Trust 2013-GCJ12	3.135%	6/10/46	4,128		4,244
4	GS Mortgage Securities Trust 2013-GCJ12	3.777%	6/10/46	1,550		1,598
4	GS Mortgage Securities Trust 2013-GCJ14	3.817%	8/10/46	651		670
4	GS Mortgage Securities Trust 2013-GCJ14	3.955%	8/10/46	6,005		6,319
4	GS Mortgage Securities Trust 2013-GCJ14	4.243%	8/10/46	105		112
4	GS Mortgage Securities Trust 2014-GC20	3.998%	4/10/47	10,638		11,335
4	GS Mortgage Securities Trust 2014-GC20	4.258%	4/10/47	570		604
4	GS Mortgage Securities Trust 2014-GC24	3.931%	9/10/47	13,475		14,408
4	GS Mortgage Securities Trust 2014-GC24	4.162%	9/10/47	6,520		6,919
4	GS Mortgage Securities Trust 2014-GC24	4.512%	9/10/47	2,610		2,722
4	GS Mortgage Securities Trust 2014-GC24	4.533%	9/10/47	4,615		4,272
4	GS Mortgage Securities Trust 2014-GC26	3.364%	11/10/47	7,680		7,982
4	GS Mortgage Securities Trust 2014-GC26	3.629%	11/10/47	17,870		18,905
4	GS Mortgage Securities Trust 2015-GC28	3.136%	2/10/48	9,200		9,510
4	GS Mortgage Securities Trust 2015-GC30	3.382%	5/10/50	2,398		2,509
4	GS Mortgage Securities Trust 2015-GC32	3.764%	7/10/48	4,615		4,929
4	GS Mortgage Securities Trust 2015-GC34	3.506%	10/10/48	14,640		15,433
4	GS Mortgage Securities Trust 2015-GC34	4.653%	10/10/48	2,610		2,763
4	GS Mortgage Securities Trust 2016-GS3	2.850%	10/10/49	2,220		2,263
4	GS Mortgage Securities Trust 2018-GS10	4.155%	7/10/51	5,335		5,929
4	GS Mortgage Securities Trust 2019-GC40	3.160%	7/10/52	1,530		1,585
4,10	GTP Acquisition Partners I LLC	2.350%	6/15/20	850		846
4,10	GTP Acquisition Partners I LLC	3.482%	6/16/25	9,030		9,293
4,10	Hardee’s Funding HNGRY 2018-1	4.959%	6/20/48	1,062		1,121
4,10	Hardee’s Funding HNGRY 2018-1A	5.710%	6/20/48	12,585		13,463
4,10	Harley Marine Financing LLC Barge 2018-1	5.682%	5/15/43	7,618		6,262
4	Harley-Davidson Motorcycle Trust 2019-A	2.340%	2/15/24	18,480		18,507
4	Harley-Davidson Motorcycle Trust 2019-A	2.390%	11/15/26	4,110		4,119
4,10	Hertz Fleet Lease Funding LP 2018-1	3.230%	5/10/32	15,729		15,911
4,10	Hertz Vehicle Financing II LP 2015-3A	2.670%	9/25/21	4,700		4,702
4,10	Hertz Vehicle Financing II LP 2016-2A	2.950%	3/25/22	6,858		6,887
4,10	Hertz Vehicle Financing II LP 2018-1A	3.600%	2/25/24	3,160		3,203
4,10	Hertz Vehicle Financing LLC 2017-2A	4.200%	10/25/23	5,340		5,515
4,10	Hilton USA Trust 2016-HHV	3.719%	11/5/38	7,780		8,218
4,7,10	Holmes Master Issuer plc 2018-1, 3M USD LIBOR + 0.360%	2.663%	10/15/54	7,985		7,978
4,7,10	Holmes Master Issuer plc 2018-2A, 3M USD LIBOR + 0.420%	2.723%	10/15/54	9,684		9,673
4	Honda Auto Receivables 2018-2 Owner Trust	3.010%	5/18/22	6,260		6,327
4	Honda Auto Receivables 2018-3 Owner Trust	3.070%	11/21/24	3,200		3,264

44

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Honda Auto Receivables 2018-4 Owner Trust	2.520%	6/21/23	47,720		48,129
4	Honda Auto Receivables 2018-4 Owner Trust	2.540%	3/21/25	9,690		9,805
4	Honda Auto Receivables 2018-4 Owner Trust	3.300%	7/15/25	4,180		4,304
4	Honda Auto Receivables 2019-1 Owner Trust	2.900%	6/18/24	2,480		2,530
4,10	Houston Galleria Mall Trust 2015-HGLR	3.087%	3/5/37	10,910		11,184
4,10	Hudson Yards 2019-30HY	3.228%	7/10/39	4,590		4,758
4,10	Hudsons Bay Simon JV Trust 2015-HB7	3.914%	8/5/34	4,750		4,846
4,10	Hyundai Auto Lease Securitization Trust 2017-C	2.210%	9/15/21	3,470		3,466
4,10	Hyundai Auto Lease Securitization Trust 2017-C	2.460%	7/15/22	3,160		3,159
4,10	Hyundai Auto Lease Securitization Trust 2018-A	2.810%	4/15/21	14,880		14,927
4,10	Hyundai Auto Lease Securitization Trust 2018-A	2.890%	3/15/22	4,710		4,739
4,10	Hyundai Auto Lease Securitization Trust 2019-A	2.980%	7/15/22	8,780		8,871
4,10	Hyundai Auto Lease Securitization Trust 2019-A	3.050%	12/15/22	1,440		1,464
4	Hyundai Auto Receivables Trust 2015-C	2.150%	11/15/21	1,400		1,399
4	Hyundai Auto Receivables Trust 2015-C	2.550%	11/15/21	3,290		3,293
4	Hyundai Auto Receivables Trust 2019-A	2.710%	5/15/25	4,680		4,758
4	Hyundai Auto Receivables Trust 2019-A	2.940%	5/15/25	2,490		2,537
4,10	Hyundai Floorplan Master Owner Trust Series 2019-1A	2.680%	4/15/24	7,380		7,453
4,7,10	Invitation Homes 2017-SFR2 Trust, 1M USD LIBOR + 0.850%	3.164%	12/17/36	13,858		13,772
4,7,10	Invitation Homes 2017-SFR2 Trust, 1M USD LIBOR + 1.150%	3.475%	12/17/36	4,930		4,918
4,7,10	Invitation Homes 2018-SFR1 Trust, 1M USD LIBOR + 0.700%	3.025%	3/17/37	8,986		8,872
4,7,10	Invitation Homes 2018-SFR1 Trust, 1M USD LIBOR + 0.950%	3.275%	3/17/37	2,250		2,223
4,10	Irvine Core Office Trust 2013-IRV	3.173%	5/15/48	6,631		6,837
4	John Deere Owner Trust 2018-B	3.230%	6/16/25	5,250		5,373
4	John Deere Owner Trust 2018-B	3.000%	1/15/26	2,280		2,336
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2010-C1	4.608%	6/15/43	1,658		1,668
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2010-C2	4.070%	11/15/43	994		1,007
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2010-C2	5.599%	11/15/43	2,313		2,366
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2010-C2	5.599%	11/15/43	2,730		2,799
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2011-C3	4.717%	2/15/46	6,605		6,777
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2011-C5	5.374%	8/15/46	4,000		4,213
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2011-RR1	4.717%	3/16/46	920		945
4	JP Morgan Chase Commercial Mortgage Securities Trust 2012-C6	3.507%	5/15/45	3,436		3,539
4	JP Morgan Chase Commercial Mortgage Securities Trust 2012-C8	2.829%	10/15/45	3,884		3,943
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2012-C8	3.424%	10/15/45	22,630		23,172
4	JP Morgan Chase Commercial Mortgage Securities Trust 2012-CIBX	4.271%	6/15/45	1,350		1,410
4,10	JP Morgan Chase Commercial Mortgage Securities Trust 2012-HSBC	3.093%	7/5/32	5,825		5,945
4	JP Morgan Chase Commercial Mortgage Securities Trust 2012-LC9	2.840%	12/15/47	4,670		4,742
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C13	3.994%	1/15/46	287		302
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C13	4.066%	1/15/46	2,550		2,658
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16	3.674%	12/15/46	1,006		1,033
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16	3.881%	12/15/46	651		691

45

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16	4.166%	12/15/46	29,810		31,917
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16	4.963%	12/15/46	2,135		2,318
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-C16	5.027%	12/15/46	960		1,035
4	JP Morgan Chase Commercial Mortgage Securities Trust 2013-LC11	2.960%	4/15/46	10,979		11,215
4	JP Morgan Chase Commercial Mortgage Securities Trust 2014-C20	3.461%	7/15/47	11,674		11,984
4	JP Morgan Chase Commercial Mortgage Securities Trust 2016-JP3	2.870%	8/15/49	4,940		5,046
4	JP Morgan Chase Commercial Mortgage Securities Trust 2016-JP4	3.648%	12/15/49	9,670		10,336
4	JP Morgan Chase Commercial Mortgage Securities Trust 2017-JP6	3.490%	7/15/50	4,140		4,386
4	JPMBB Commercial Mortgage Securities Trust 2013-C12	3.363%	7/15/45	5,108		5,277
4	JPMBB Commercial Mortgage Securities Trust 2013-C12	3.664%	7/15/45	5,515		5,776
4	JPMBB Commercial Mortgage Securities Trust 2013-C12	4.039%	7/15/45	5,000		5,257
4	JPMBB Commercial Mortgage Securities Trust 2013-C14	3.761%	8/15/46	1,251		1,288
4	JPMBB Commercial Mortgage Securities Trust 2013-C14	4.133%	8/15/46	6,118		6,521
4	JPMBB Commercial Mortgage Securities Trust 2013-C15	3.659%	11/15/45	331		340
4	JPMBB Commercial Mortgage Securities Trust 2013-C15	4.927%	11/15/45	1,750		1,890
4	JPMBB Commercial Mortgage Securities Trust 2013-C15	5.198%	11/15/45	1,340		1,451
4	JPMBB Commercial Mortgage Securities Trust 2013-C17	4.199%	1/15/47	4,363		4,683
4	JPMBB Commercial Mortgage Securities Trust 2014-C18	4.079%	2/15/47	14,680		15,703
4	JPMBB Commercial Mortgage Securities Trust 2014-C18	4.439%	2/15/47	600		644
4	JPMBB Commercial Mortgage Securities Trust 2014-C18	4.812%	2/15/47	2,500		2,698
4	JPMBB Commercial Mortgage Securities Trust 2014-C18	4.812%	2/15/47	1,000		1,062
4	JPMBB Commercial Mortgage Securities Trust 2014-C19	3.997%	4/15/47	3,680		3,924
4	JPMBB Commercial Mortgage Securities Trust 2014-C21	3.493%	8/15/47	5,500		5,764
4	JPMBB Commercial Mortgage Securities Trust 2014-C24	3.639%	11/15/47	5,810		6,136
4	JPMBB Commercial Mortgage Securities Trust 2014-C26	3.231%	1/15/48	13,220		13,661
4	JPMBB Commercial Mortgage Securities Trust 2014-C26	3.494%	1/15/48	5,120		5,376
4	JPMBB Commercial Mortgage Securities Trust 2015-C27	3.179%	2/15/48	9,823		10,188
4	JPMBB Commercial Mortgage Securities Trust 2015-C30	3.551%	7/15/48	4,640		4,887
4	JPMBB Commercial Mortgage Securities Trust 2015-C30	3.822%	7/15/48	3,700		3,968
4	JPMBB Commercial Mortgage Securities Trust 2015-C30	4.226%	7/15/48	2,245		2,415
4	JPMBB Commercial Mortgage Securities Trust 2015-C31	3.801%	8/15/48	11,540		12,371
4	JPMBB Commercial Mortgage Securities Trust 2015-C32	3.598%	11/15/48	3,783		4,015

46

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	JPMBB Commercial Mortgage Securities Trust 2015-C33	3.770%	12/15/48	7,300		7,827
4	JPMCC Commercial Mortgage Securities Trust 2017-JP5	3.723%	3/15/50	11,680		12,546
4	JPMCC Commercial Mortgage Securities Trust 2017-JP7	3.454%	9/15/50	4,680		4,946
4	JPMDB Commercial Mortgage Securities Trust 2016-C4	3.141%	12/15/49	2,840		2,942
4	JPMDB Commercial Mortgage Securities Trust 2017-C7	3.409%	10/15/50	3,460		3,657
4	JPMDB Commercial Mortgage Securities Trust 2018-C8	4.211%	6/15/51	150		167
4,7,10	Lanark Master Issuer plc 2018-1A, 3M USD LIBOR + 0.420%	2.943%	12/22/69	4,760		4,752
4,7,10	Lanark Master Issuer plc 2018-2A, 1M USD LIBOR + 0.840%	2.943%	12/22/69	5,601		5,616
4,10	Laurel Road Prime Student Loan Trust 2018-B	3.540%	5/26/43	13,250		13,725
4,10	LCCM Mortgage Trust 2014-A	3.388%	5/15/31	910		924
4	Louisiana Local Government Environmental Facilities & Community Development Authority Revenue 2010-ELL	3.450%	2/1/22	1,283		1,285
4,10	LRK 2019-A A2FX	2.730%	10/25/48	10,750		10,763
4,10	Madison Avenue Trust 2013-650M	3.843%	10/12/32	1,245		1,260
4	Mercedes-Benz Auto Lease Trust 2018-A	2.200%	4/15/20	557		557
4	Mercedes-Benz Auto Receivables Trust 2018-1	3.150%	10/15/24	5,220		5,373
4,10	Mercedes-Benz Master Owner Trust 2019-B	2.610%	5/15/24	24,600		24,869
4,10	MMAF Equipment Finance LLC 2015-AA	2.490%	2/19/36	13,514		13,539
4,10	MMAF Equipment Finance LLC 2018-A	3.390%	1/10/25	2,900		2,976
4,10	MMAF Equipment Finance LLC 2018-A	3.610%	3/10/42	1,580		1,640
4,10	MMAF Equipment Finance LLC 2019-A	3.080%	11/12/41	2,630		2,686
4	Morgan Stanley Bank of America Merrill Lynch Trust 2012-C5	3.176%	8/15/45	8,462		8,665
4	Morgan Stanley Bank of America Merrill Lynch Trust 2012-C5	3.792%	8/15/45	16,040		16,585
4	Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6	2.858%	11/15/45	5,382		5,467
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C10	4.082%	7/15/46	1,244		1,325
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C10	4.082%	7/15/46	1,830		1,866
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C11	3.960%	8/15/46	10,951		11,520
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C11	4.154%	8/15/46	3,937		4,193
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C12	3.824%	10/15/46	803		825
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C12	4.259%	10/15/46	1,940		2,081
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C13	4.039%	11/15/46	400		427
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7	2.918%	2/15/46	2,470		2,517
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7	3.214%	2/15/46	2,000		2,037
4	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C9	3.102%	5/15/46	12,980		13,332
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C14	4.064%	2/15/47	2,300		2,457
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C14	4.384%	2/15/47	1,600		1,724
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15	3.773%	4/15/47	10,122		10,666
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15	4.051%	4/15/47	21,575		23,052

47

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C15	4.911%	4/15/47	1,140		1,233
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C16	3.892%	6/15/47	8,646		9,201
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C16	4.094%	6/15/47	935		990
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C16	4.337%	6/15/47	7,090		7,541
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C16	4.770%	6/15/47	2,400		2,533
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C17	3.741%	8/15/47	28,696		30,394
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C17	4.011%	8/15/47	1,380		1,460
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18	3.923%	10/15/47	5,430		5,802
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C19	3.326%	12/15/47	6,880		7,082
4	Morgan Stanley Bank of America Merrill Lynch Trust 2014-C19	3.526%	12/15/47	3,940		4,145
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20	3.069%	2/15/48	8,640		8,809
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C20	3.249%	2/15/48	10,453		10,851
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C23	3.451%	7/15/50	3,420		3,582
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C23	3.719%	7/15/50	3,290		3,508
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C24	3.479%	5/15/48	4,300		4,524
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C24	3.732%	5/15/48	34,430		36,714
4	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C25	3.635%	10/15/48	7,598		8,066
4	Morgan Stanley Bank of America Merrill Lynch Trust 2016-C29	3.325%	5/15/49	20,260		21,146
4	Morgan Stanley Bank of America Merrill Lynch Trust 2016-C29	4.750%	5/15/49	1,090		1,154
4	Morgan Stanley Bank of America Merrill Lynch Trust 2016-C32	3.720%	12/15/49	29,870		31,970
4	Morgan Stanley Bank of America Merrill Lynch Trust 2017-C34	3.536%	11/15/52	6,550		6,942
4	Morgan Stanley Capital I Trust 2012-C4	3.244%	3/15/45	2,260		2,306
4	Morgan Stanley Capital I Trust 2012-C4	3.773%	3/15/45	2,440		2,511
4,10	Morgan Stanley Capital I Trust 2012-STAR	3.201%	8/5/34	6,407		6,558
4,10	Morgan Stanley Capital I Trust 2014-150E	3.912%	9/9/32	6,370		6,768
4,10	Morgan Stanley Capital I Trust 2014-CPT	3.350%	7/13/29	2,795		2,845
4,10	Morgan Stanley Capital I Trust 2015-420	3.727%	10/12/50	4,430		4,639
4	Morgan Stanley Capital I Trust 2015-UBS8	3.809%	12/15/48	48,685		52,205
4	Morgan Stanley Capital I Trust 2015-UBS8	4.587%	12/15/48	3,210		3,380
4	Morgan Stanley Capital I Trust 2016-BNK2	3.049%	11/15/49	5,260		5,421
4	Morgan Stanley Capital I Trust 2016-UB11	2.782%	8/15/49	31,860		32,200
4	Morgan Stanley Capital I Trust 2016-UBS9	3.594%	3/15/49	10,670		11,306
4	Morgan Stanley Capital I Trust 2017-HR2	3.509%	12/15/50	2,800		2,952
4	Morgan Stanley Capital I Trust 2017-HR2	3.587%	12/15/50	3,506		3,730
4	Morgan Stanley Capital I Trust 2018-H4	4.247%	12/15/51	6,730		7,423
4,7,10	Motor plc 2017-1A, 1M USD LIBOR + 0.530%	2.796%	9/25/24	15,342		15,340
4,10	MSBAM Commercial Mortgage Securities Trust 2012-CKSV	3.277%	10/15/30	11,190		11,271
4,7,10	Navient Student Loan Trust 2016-2, 1M USD LIBOR + 1.050%	3.316%	6/25/65	1,706		1,717
4,7,10	Navient Student Loan Trust 2016-3, 1M USD LIBOR + 0.850%	3.116%	6/25/65	1,113		1,116

48

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4,7,10	Navient Student Loan Trust 2016-6A, 1M USD LIBOR + 0.750%	3.016%	3/25/66	10,514		10,570
4,10	Navient Student Loan Trust 2017-A	2.880%	12/16/58	8,940		9,026
4,7,10	Navient Student Loan Trust 2018-1, 1M USD LIBOR + 0.190%	2.456%	3/25/67	181		181
4,10	Navient Student Loan Trust 2018-BA	3.430%	12/15/59	38,809		39,352
4,10	Navient Student Loan Trust 2018-BA	3.610%	12/15/59	5,840		6,067
4,10	Navient Student Loan Trust 2018-BA	4.000%	12/15/59	32,690		34,626
4,10	Navient Student Loan Trust 2018-CA	3.010%	6/16/42	3,233		3,252
4,10	Navient Student Loan Trust 2018-CA	3.520%	6/16/42	23,520		24,282
4,10	Navient Student Loan Trust 2018-DA	4.000%	12/15/59	19,280		20,034
4,10	Navient Student Loan Trust 2019-B	3.390%	12/15/59	6,510		6,704
4,7	New Mexico Educational Assistance Foundation 2013-1, 1M USD LIBOR + 0.700%	3.102%	1/2/25	2,104		2,086
4	Nissan Auto Lease Trust 2017-A	1.910%	4/15/20	3,206		3,205
4	Nissan Auto Lease Trust 2017-A	2.040%	9/15/22	8,960		8,954
4	Nissan Auto Lease Trust 2018-B	3.350%	9/15/23	5,450		5,535
4	Nissan Auto Lease Trust 2019-A	2.760%	3/15/22	10,010		10,101
4	Nissan Auto Lease Trust 2019-A	2.780%	7/15/24	4,910		4,982
4	Nissan Auto Receivables 2017-C Owner Trust	2.280%	2/15/24	10,870		10,895
4	Nissan Auto Receivables 2018-B Owner Trust	3.160%	12/16/24	5,220		5,360
4	Nissan Auto Receivables 2019-A Owner Trust	3.000%	9/15/25	3,520		3,620
4	Nissan Auto Receivables 2019-B Owner Trust	2.500%	11/15/23	49,120		49,585
4	Nissan Auto Receivables 2019-B Owner Trust	2.540%	12/15/25	9,540		9,684
4,10	OBP Depositor LLC Trust 2010-OBP	4.646%	7/15/45	121		123
4,10	Palisades Center Trust 2016-PLSD	2.713%	4/13/33	8,980		8,993
4,7,10	Pepper Residential Securities Trust 2017-A, 1M USD LIBOR + 1.100%	3.479%	3/10/58	1,049		1,050
4,7,10	Pepper Residential Securities Trust 2018-A, 1M USD LIBOR + 0.950%	3.319%	3/12/47	380		381
4,7,10	Pepper Residential Securities Trust 2021-A1U, 1M USD LIBOR + 0.880%	3.212%	1/16/60	13,913		13,896
4,7,10	Pepper Residential Securities Trust 2022-A1U, 1M USD LIBOR + 0.350%	3.272%	6/20/60	7,911		7,893
4,7,10	Pepper Residential Securities Trust 2023-A1U, 1M USD LIBOR + 0.950%	3.250%	8/18/60	3,512		3,512
4,7,10	Permanent Master Issuer plc 2018-1A, 3M USD LIBOR + 0.380%	2.683%	7/15/58	6,540		6,541
4,10	PFS Financing Corp. 2017-B	2.220%	7/15/22	15,980		15,942
4,7,10	PFS Financing Corp. 2017-C, 1M USD LIBOR + 0.470%	2.795%	10/15/21	16,560		16,559
4,10	PFS Financing Corp. 2017-D	2.400%	10/17/22	17,210		17,204
4,10	PFS Financing Corp. 2018-D	3.190%	4/17/23	5,460		5,533
4,7,10	PHEAA Student Loan Trust 2016-2A, 1M USD LIBOR + 0.950%	3.216%	11/25/65	10,808		10,784
4,10	Progress Residential 2015-SFR2 Trust	2.740%	6/12/32	2,450		2,448
4,10	Progress Residential 2015-SFR3 Trust	3.067%	11/12/32	9,294		9,279
4,10	Progress Residential 2015-SFR3 Trust	3.733%	11/12/32	3,460		3,466
4,10	Progress Residential 2017-SFR2 Trust	2.897%	12/17/34	7,770		7,757
4,10	Progress Residential 2017-SFR2 Trust	3.196%	12/17/34	2,020		2,025
4,10	Progress Residential 2018-SFR1 Trust	3.255%	3/17/35	4,574		4,612
4,10	Progress Residential 2018-SFR1 Trust	3.484%	3/17/35	580		586
4,10	Progress Residential 2018-SFR3 Trust	3.880%	10/17/35	15,061		15,547
4	Public Service New Hampshire Funding LLC 2018-1	3.094%	2/1/26	3,175		3,224
4,7,10	Resimac Premier Series 2018-1A, 1M USD LIBOR + 0.800%	3.179%	11/10/49	10,361		10,348
4,7,10	Resimac Premier Series 2018-1NCA, 1M USD LIBOR + 0.850%	3.210%	12/5/59	15,625		15,644
4,7,10	Resimac Premier Series 2018-2, 1M USD LIBOR + 0.850%	3.229%	4/10/50	2,270		2,266
4	Santander Drive Auto Receivables Trust 2015-3	3.490%	5/17/21	4,286		4,296
4	Santander Drive Auto Receivables Trust 2016-2	3.390%	4/15/22	1,440		1,454
4	Santander Drive Auto Receivables Trust 2016-3	2.460%	3/15/22	3,401		3,400
4	Santander Drive Auto Receivables Trust 2017-3	2.760%	12/15/22	3,980		3,990
4	Santander Drive Auto Receivables Trust 2018-1	2.320%	8/16/21	790		790

49

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Santander Drive Auto Receivables Trust 2018-1	2.960%	3/15/24	9,410		9,458
4	Santander Drive Auto Receivables Trust 2018-1	3.320%	3/15/24	4,110		4,155
4	Santander Drive Auto Receivables Trust 2018-3	3.290%	10/17/22	13,250		13,309
4	Santander Drive Auto Receivables Trust 2018-3	4.070%	8/15/24	21,950		22,549
4	Santander Drive Auto Receivables Trust 2018-4	3.980%	12/15/25	11,000		11,284
4	Santander Drive Auto Receivables Trust 2018-5	4.190%	12/16/24	17,580		18,095
4,10	Santander Retail Auto Lease Trust 2017-A	2.680%	1/20/22	2,850		2,846
4,10	Santander Retail Auto Lease Trust 2018-A	2.930%	5/20/21	11,150		11,205
4,10	Santander Retail Auto Lease Trust 2018-A	3.060%	4/20/22	3,910		3,940
4,10	Santander Retail Auto Lease Trust 2018-A	3.200%	4/20/22	3,340		3,362
4,10	Santander Retail Auto Lease Trust 2018-A	3.490%	5/20/22	7,760		7,825
4,10	Santander Retail Auto Lease Trust 2019-A	2.770%	6/20/22	28,060		28,312
4,10	SBA Tower Trust	3.156%	10/8/20	3,970		3,970
4,10	Securitized Term Auto Receivables Trust 2016-1A	1.794%	2/25/21	3,960		3,950
4,10	Securitized Term Auto Receivables Trust 2017-2A	2.289%	3/25/22	6,400		6,385
4,10	Securitized Term Auto Receivables Trust 2018-1A	3.298%	11/25/22	2,350		2,401
4,10	Securitized Term Auto Receivables Trust 2018-2A	3.544%	6/26/23	3,370		3,465
4,10	SLM Private Education Loan Trust 2011-C	4.540%	10/17/44	735		740
4,10	SLM Private Education Loan Trust 2013-A	2.500%	3/15/47	1,120		1,120
4,10	SLM Private Education Loan Trust 2013-B	1.850%	6/17/30	268		268
4,10	SLM Private Education Loan Trust 2013-B	3.000%	5/16/44	3,000		2,996
4,10	SLM Private Education Loan Trust 2013-C	3.500%	6/15/44	2,000		2,005
4,10	SLM Private Education Loan Trust 2014-A	3.500%	11/15/44	800		815
4	SMART ABS Series 2016-2US Trust	2.050%	12/14/22	1,830		1,812
4,10	SMB Private Education Loan Trust 2016-A	2.700%	5/15/31	4,173		4,202
4,7,10	SMB Private Education Loan Trust 2016-B, 1M USD LIBOR + 1.500%	3.775%	2/17/32	3,088		3,152
4,7,10	SMB Private Education Loan Trust 2016-C, 1M USD LIBOR + 1.100%	3.425%	9/15/34	4,369		4,393
4,7,10	SMB Private Education Loan Trust 2017-A, 1M USD LIBOR + 0.900%	3.225%	9/15/34	7,069		7,079
4,10	SMB Private Education Loan Trust 2017-B	2.820%	10/15/35	9,810		9,891
4,10	SMB Private Education Loan Trust 2018-A	3.500%	2/15/36	18,170		18,756
4,10	SMB Private Education Loan Trust 2018-B	3.600%	1/15/37	10,670		11,084
4,10	SMB Private Education Loan Trust 2018-C	3.630%	11/15/35	14,560		15,073
4,10	SoFi Professional Loan Program 2016-B LLC	2.740%	10/25/32	2,768		2,779
4,10	SoFi Professional Loan Program 2016-C LLC	2.360%	12/27/32	2,535		2,526
4,10	SoFi Professional Loan Program 2016-D LLC	2.340%	4/25/33	1,945		1,937
4,7,10	SoFi Professional Loan Program 2016-D LLC, 1M USD LIBOR + 0.950%	3.216%	1/25/39	722		724
4,10	SoFi Professional Loan Program 2017-A LLC	2.400%	3/26/40	1,280		1,276
4,10	SoFi Professional Loan Program 2017-B LLC	2.740%	5/25/40	7,170		7,238
4,7,10	SoFi Professional Loan Program 2017-C LLC, 1M USD LIBOR + 0.600%	2.866%	7/25/40	624		625
4,10	SoFi Professional Loan Program 2017-D LLC	2.650%	9/25/40	5,700		5,728
4,10	SoFi Professional Loan Program 2017-E LLC	1.860%	11/26/40	8,071		8,045
4,10	SoFi Professional Loan Program 2017-E LLC	2.720%	11/26/40	5,080		5,100
4,10	SoFi Professional Loan Program 2017-F LLC	2.050%	1/25/41	6,200		6,184
4,10	SoFi Professional Loan Program 2017-F LLC	2.840%	1/25/41	6,120		6,175
4,10	SoFi Professional Loan Program 2018-A LLC	2.390%	2/25/42	6,779		6,778
4,10	SoFi Professional Loan Program 2018-A LLC	2.950%	2/25/42	5,660		5,733
4,10	SoFi Professional Loan Program 2018-B LLC	3.340%	8/25/47	8,850		9,095
4,10	SoFi Professional Loan Program 2018-C LLC	3.590%	1/25/48	21,540		22,496
4,10	SoFi Professional Loan Program 2018-D LLC	3.600%	2/25/48	19,000		19,764
4,10	SoFi Professional Loan Program 2019-B LLC	3.090%	8/17/48	6,930		7,051
4,10	Stack Infrastructure Issuer LLC 2019-1A	4.540%	2/25/44	5,648		5,872
4	Synchrony Card Issuance Trust 2018-A1	3.380%	9/15/24	15,280		15,671
4	Synchrony Card Issuance Trust 2019-2A	2.340%	6/15/25	13,530		13,543
4	Synchrony Credit Card Master Note Trust 2015-4	2.380%	9/15/23	20,127		20,146
4	Synchrony Credit Card Master Note Trust 2016-2	2.950%	5/15/24	5,300		5,316
4	Synchrony Credit Card Master Note Trust 2016-3	1.580%	9/15/22	5,710		5,705
4	Synchrony Credit Card Master Note Trust 2016-3	1.910%	9/15/22	9,890		9,881
4	Synchrony Credit Card Master Note Trust 2017-2	2.620%	10/15/25	15,680		15,895
4	Synchrony Credit Card Master Note Trust 2017-2	2.820%	10/15/25	4,770		4,814

50

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Synchrony Credit Card Master Note Trust 2017-2	3.010%	10/15/25	6,390		6,449
4,10	Taco Bell Funding LLC 2016-1A	4.377%	5/25/46	3,626		3,678
4,10	Taco Bell Funding LLC 2016-1A	4.970%	5/25/46	5,174		5,439
4,10	Taco Bell Funding LLC 2018-1	4.940%	11/25/48	5,761		6,153
4,10	Tesla Auto Lease Trust 2018-A	2.320%	12/20/19	3,437		3,435
4,10	Tesla Auto Lease Trust 2018-A	2.750%	2/20/20	700		700
4,10	Tesla Auto Lease Trust 2018-A	2.970%	4/20/20	560		561
4,10	Tesla Auto Lease Trust 2018-A	3.300%	5/20/20	630		632
4,10	Tesla Auto Lease Trust 2018-B	3.710%	8/20/21	50,301		51,021
4,10	Tesla Auto Lease Trust 2018-B	4.120%	10/20/21	5,650		5,788
4,10	Tesla Auto Lease Trust 2018-B	4.360%	10/20/21	3,590		3,658
4,10	Textainer Marine Containers Limited 2019-A	3.960%	4/20/44	5,449		5,619
4,10	Tidewater Auto Receivables Trust 2018-AA	3.120%	7/15/22	3,829		3,837
4,10	Tidewater Auto Receivables Trust 2018-AA	3.450%	11/15/24	1,880		1,894
4,10	Tidewater Auto Receivables Trust 2018-AA	3.840%	11/15/24	2,100		2,138
4,10	Tidewater Auto Receivables Trust 2018-AA	4.300%	11/15/24	630		648
4,10	TMSQ 2014-1500 Mortgage Trust	3.680%	10/10/36	2,800		2,956
4	Toyota Auto Receivables 2017-D Owner Trust	2.120%	2/15/23	1,345		1,345
4	Toyota Auto Receivables 2018-A Owner Trust	2.350%	5/16/22	18,090		18,116
4	Toyota Auto Receivables 2018-A Owner Trust	2.520%	5/15/23	1,590		1,604
4	Toyota Auto Receivables 2018-B Owner Trust	3.110%	11/15/23	5,780		5,937
4	Toyota Auto Receivables 2018-C Owner Trust	3.130%	2/15/24	5,140		5,253
4	Toyota Auto Receivables 2019-A Owner Trust	3.000%	5/15/24	2,350		2,403
4,10	Trafigura Securitisation Finance plc 2017-1A	2.470%	12/15/20	43,600		43,268
4,10	Trafigura Securitisation Finance plc 2018-1A	3.730%	3/15/22	23,100		23,218
4,10	Trillium Credit Card Trust II 2019-2A	3.038%	1/26/24	19,450		19,688
4,10	Trinity Rail Leasing LP 2018-1A	4.620%	6/17/48	10,260		10,844
4,10	Trip Rail Master Funding LLC 2017-1A	2.709%	8/15/47	2,082		2,075
4,10	Triton Container Finance LLC 2018-A2	4.190%	6/22/43	14,071		14,433
4	UBS Commercial Mortgage Trust 2012-C1	4.171%	5/10/45	1,200		1,247
4	UBS Commercial Mortgage Trust 2017-C7	3.679%	12/15/50	3,723		3,977
4	UBS Commercial Mortgage Trust 2019-C16	3.460%	4/15/52	2,287		2,414
4,10	UBS-BAMLL Trust 2012-WRM	3.663%	6/10/30	6,673		6,851
4	UBS-Barclays Commercial Mortgage Trust 2012-C4	2.850%	12/10/45	5,703		5,795
4	UBS-Barclays Commercial Mortgage Trust 2013-C6	3.244%	4/10/46	3,970		4,095
4	UBS-Barclays Commercial Mortgage Trust 2013-C6	3.469%	4/10/46	1,160		1,200
4,10	Vantage Data Centers Issuer, LLC 2018-1A	4.072%	2/16/43	6,152		6,298
4,10	Verizon Owner Trust 2016-2A	1.680%	5/20/21	9,309		9,296
4,10	Verizon Owner Trust 2017-3	2.380%	4/20/22	8,950		8,941
4,10	Verizon Owner Trust 2017-3	2.530%	4/20/22	9,610		9,623
4,10	Verizon Owner Trust 2018-1	2.820%	9/20/22	20,120		20,249
4,10	Verizon Owner Trust 2018-1	3.050%	9/20/22	7,320		7,391
4	Verizon Owner Trust 2018-A	3.230%	4/20/23	8,200		8,341
4	Verizon Owner Trust 2019-A	2.930%	9/20/23	7,820		7,943
4,10	VNDO 2012-6AVE Mortgage Trust	2.996%	11/15/30	9,070		9,251
4,10	VNDO 2013-PENN Mortgage Trust	3.808%	12/13/29	1,100		1,117
4,10	VNDO 2013-PENN Mortgage Trust	3.947%	12/13/29	650		660
4,10	VNDO 2013-PENN Mortgage Trust	3.947%	12/13/29	490		496
4	Volkswagen Auto Loan Enhanced Trust 2018-1	3.020%	11/21/22	8,050		8,150
4	Volkswagen Auto Loan Enhanced Trust 2018-1	3.150%	7/22/24	3,680		3,761
4	Volkswagen Auto Loan Enhanced Trust 2018-2	3.330%	2/20/25	4,510		4,653
4	Wells Fargo Commercial Mortgage Trust 2012-LC5	2.918%	10/15/45	6,252		6,360
4	Wells Fargo Commercial Mortgage Trust 2012-LC5	3.539%	10/15/45	7,210		7,427
4	Wells Fargo Commercial Mortgage Trust 2013-LC12	3.928%	7/15/46	801		829
4	Wells Fargo Commercial Mortgage Trust 2013-LC12	4.218%	7/15/46	7,883		8,415
4	Wells Fargo Commercial Mortgage Trust 2014-LC16	3.548%	8/15/50	11,500		12,013
4	Wells Fargo Commercial Mortgage Trust 2014-LC16	3.817%	8/15/50	8,920		9,467
4	Wells Fargo Commercial Mortgage Trust 2014-LC16	4.020%	8/15/50	700		736
4	Wells Fargo Commercial Mortgage Trust 2014-LC16	4.322%	8/15/50	2,400		2,528
4	Wells Fargo Commercial Mortgage Trust 2014-LC16	4.458%	8/15/50	1,450		1,458
4	Wells Fargo Commercial Mortgage Trust 2014-LC18	3.405%	12/15/47	12,670		13,253
4	Wells Fargo Commercial Mortgage Trust 2015-C26	3.166%	2/15/48	30,685		31,760
4	Wells Fargo Commercial Mortgage Trust 2015-C27	3.451%	2/15/48	15,822		16,612
4	Wells Fargo Commercial Mortgage Trust 2015-C29	3.637%	6/15/48	16,385		17,400

51

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Wells Fargo Commercial Mortgage Trust 2015-C29	4.224%	6/15/48	2,310		2,420
4	Wells Fargo Commercial Mortgage Trust 2015-C30	3.411%	9/15/58	7,300		7,618
4	Wells Fargo Commercial Mortgage Trust 2015-C30	3.664%	9/15/58	4,380		4,661
4	Wells Fargo Commercial Mortgage Trust 2015-C30	4.067%	9/15/58	2,250		2,410
4	Wells Fargo Commercial Mortgage Trust 2015-C30	4.497%	9/15/58	2,740		2,880
4	Wells Fargo Commercial Mortgage Trust 2015-LC22	3.839%	9/15/58	7,449		8,000
4	Wells Fargo Commercial Mortgage Trust 2015-LC22	4.207%	9/15/58	2,045		2,202
4	Wells Fargo Commercial Mortgage Trust 2015-LC22	4.543%	9/15/58	5,225		5,498
4	Wells Fargo Commercial Mortgage Trust 2015-SG1	3.789%	9/15/48	22,686		24,213
4	Wells Fargo Commercial Mortgage Trust 2016-BNK1	2.652%	8/15/49	8,950		8,978
4	Wells Fargo Commercial Mortgage Trust 2016-C32	3.560%	1/15/59	8,870		9,395
4	Wells Fargo Commercial Mortgage Trust 2016-C37	3.525%	12/15/49	1,390		1,466
4	Wells Fargo Commercial Mortgage Trust 2016-C37	3.794%	12/15/49	7,890		8,504
4	Wells Fargo Commercial Mortgage Trust 2017-C38	3.453%	7/15/50	6,905		7,281
4	Wells Fargo Commercial Mortgage Trust 2017-C39	3.157%	9/15/50	1,400		1,453
4	Wells Fargo Commercial Mortgage Trust 2017-C39	3.418%	9/15/50	21,430		22,608
4	Wells Fargo Commercial Mortgage Trust 2017-C40	3.581%	10/15/50	15,380		16,371
4	Wells Fargo Commercial Mortgage Trust 2017-C41	3.472%	11/15/50	10,700		11,320
4	Wells Fargo Commercial Mortgage Trust 2017-C42	3.589%	12/15/50	9,345		9,942
4	Wells Fargo Commercial Mortgage Trust 2017-RC1	3.631%	1/15/60	2,712		2,889
4	Wells Fargo Commercial Mortgage Trust 2018-C43	4.012%	3/15/51	5,470		5,994
4	Wells Fargo Commercial Mortgage Trust 2018-C43	4.514%	3/15/51	12,380		13,093
4	Wells Fargo Commercial Mortgage Trust 2018-C46	4.152%	8/15/51	8,630		9,566
4	Wells Fargo Commercial Mortgage Trust 2018-C47	4.365%	9/15/61	5,600		6,209
4	Wells Fargo Commercial Mortgage Trust 2018-C47	4.442%	9/15/61	13,690		15,496
4	Wells Fargo Commercial Mortgage Trust 2018-C48	4.245%	1/15/52	11,180		12,308
4	Wells Fargo Commercial Mortgage Trust 2019-C49	3.933%	3/15/52	3,250		3,529
4	Wells Fargo Commercial Mortgage Trust 2019-C49	4.023%	3/15/52	8,400		9,262
4	Wells Fargo Commercial Mortgage Trust 2019-C50	3.635%	5/15/52	3,710		3,958
4,10	Wendys Funding LLC 2015-1A	4.497%	6/15/45	2,223		2,301
4,10	Wendys Funding LLC 2018-1	3.573%	3/15/48	3,152		3,170
4,10	Wendys Funding LLC 2018-1	3.884%	3/15/48	4,738		4,780
4,10	WFLD 2014-MONT Mortgage Trust	3.755%	8/10/31	4,640		4,910
4,10	WFRBS Commercial Mortgage Trust 2011-C3	4.375%	3/15/44	6,202		6,378
4	WFRBS Commercial Mortgage Trust 2012-C10	2.875%	12/15/45	5,280		5,369
4	WFRBS Commercial Mortgage Trust 2012-C7	3.431%	6/15/45	6,130		6,300
4	WFRBS Commercial Mortgage Trust 2012-C7	4.090%	6/15/45	4,170		4,312
4	WFRBS Commercial Mortgage Trust 2012-C8	3.001%	8/15/45	3,789		3,860
4	WFRBS Commercial Mortgage Trust 2012-C9	2.870%	11/15/45	9,924		10,080
4	WFRBS Commercial Mortgage Trust 2012-C9	3.388%	11/15/45	2,870		2,946
4	WFRBS Commercial Mortgage Trust 2013-C13	3.345%	5/15/45	2,220		2,287
4	WFRBS Commercial Mortgage Trust 2013-C15	3.720%	8/15/46	1,809		1,857
4	WFRBS Commercial Mortgage Trust 2013-C15	4.153%	8/15/46	6,044		6,430
4	WFRBS Commercial Mortgage Trust 2013-C17	3.558%	12/15/46	311		319
4	WFRBS Commercial Mortgage Trust 2013-C18	3.676%	12/15/46	1,887		1,944
4	WFRBS Commercial Mortgage Trust 2013-C18	4.162%	12/15/46	7,778		8,338
4	WFRBS Commercial Mortgage Trust 2013-C18	4.694%	12/15/46	1,085		1,181
4	WFRBS Commercial Mortgage Trust 2014-C19	3.829%	3/15/47	12,930		13,656
4	WFRBS Commercial Mortgage Trust 2014-C19	4.101%	3/15/47	10,595		11,360
4	WFRBS Commercial Mortgage Trust 2014-C20	3.995%	5/15/47	14,675		15,692
4	WFRBS Commercial Mortgage Trust 2014-C20	4.378%	5/15/47	2,410		2,531
4	WFRBS Commercial Mortgage Trust 2014-C20	4.513%	5/15/47	1,410		1,430
4	WFRBS Commercial Mortgage Trust 2014-C21	3.410%	8/15/47	1,520		1,584
4	WFRBS Commercial Mortgage Trust 2014-C21	3.678%	8/15/47	13,235		13,988
4	WFRBS Commercial Mortgage Trust 2014-C21	3.891%	8/15/47	700		739
4	WFRBS Commercial Mortgage Trust 2014-C21	4.234%	8/15/47	2,410		2,502
4	WFRBS Commercial Mortgage Trust 2014-C23	3.917%	10/15/57	4,167		4,455
4	WFRBS Commercial Mortgage Trust 2014-C24	3.607%	11/15/47	14,179		14,957
4	WFRBS Commercial Mortgage Trust 2014-LC14	3.766%	3/15/47	920		971
4	WFRBS Commercial Mortgage Trust 2014-LC14	4.045%	3/15/47	13,996		14,951
4	World Omni Auto Receivables Trust 2018-A	2.730%	2/15/24	7,680		7,755
4	World Omni Auto Receivables Trust 2018-A	2.890%	4/15/25	3,820		3,868
4	World Omni Auto Receivables Trust 2018-D	3.440%	12/16/24	1,770		1,840
4	World Omni Auto Receivables Trust 2019-A	3.220%	6/16/25	3,060		3,159

52

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	World Omni Auto Receivables Trust 2019-B	2.860%	6/16/25	2,510		2,566
4	World Omni Automobile Lease Securitization Trust 2018-A	2.830%	7/15/21	6,650		6,679
4	World Omni Automobile Lease Securitization Trust 2018-B	3.190%	12/15/21	9,780		9,904
4	World Omni Automobile Lease Securitization Trust 2019-B	3.240%	7/15/24	1,940		1,960
4,10	World Omni Select Auto Trust A Series 2018-1 A3	3.460%	3/15/23	5,980		6,063
Total Asset-Backed/Commercial Mortgage-Backed Securities (Cost $5,727,937)						5,849,987
Corporate Bonds (64.3%)
Finance (29.2%)
	Banking (21.3%)
	American Express Co.	3.700%	8/3/23	66,175		69,159
	American Express Co.	3.400%	2/22/24	60,000		62,251
	American Express Co.	2.500%	7/30/24	32,330		32,221
	American Express Co.	3.000%	10/30/24	35,385		36,078
	American Express Co.	4.200%	11/6/25	16,815		18,293
	American Express Credit Corp.	2.700%	3/3/22	16,000		16,161
10	Banco de Credito del Peru	4.250%	4/1/23	5,000		5,236
	Banco Santander SA	2.706%	6/27/24	26,000		25,909
	Banco Santander SA	3.800%	2/23/28	13,000		13,317
	Banco Santander SA	4.379%	4/12/28	4,415		4,708
	Banco Santander SA	3.306%	6/27/29	20,800		21,024
4	Bank of America Corp.	3.864%	7/23/24	18,610		19,478
4	Bank of America Corp.	3.458%	3/15/25	10,000		10,345
	Bank of America Corp.	3.875%	8/1/25	4,795		5,114
4	Bank of America Corp.	3.093%	10/1/25	72,895		74,284
4	Bank of America Corp.	3.366%	1/23/26	47,635		49,078
	Bank of America Corp.	3.248%	10/21/27	24,000		24,580
4	Bank of America Corp.	3.824%	1/20/28	89,380		94,360
4	Bank of America Corp.	3.705%	4/24/28	19,500		20,390
	Bank of America Corp.	3.419%	12/20/28	25,500		26,221
4	Bank of America Corp.	3.970%	3/5/29	7,000		7,473
4	Bank of America Corp.	4.271%	7/23/29	24,250		26,462
4	Bank of America Corp.	3.974%	2/7/30	35,770		38,279
4	Bank of America Corp.	3.194%	7/23/30	30,000		30,190
	Bank of Montreal	3.300%	2/5/24	76,000		78,537
	Bank of New York Mellon Corp.	3.450%	8/11/23	50,000		51,963
	Bank of New York Mellon Corp.	2.200%	8/16/23	39,575		39,313
	Bank of New York Mellon Corp.	3.650%	2/4/24	17,000		17,918
	Bank of New York Mellon Corp.	3.400%	5/15/24	20,200		20,984
	Bank of New York Mellon Corp.	3.250%	9/11/24	11,142		11,544
	Bank of New York Mellon Corp.	3.000%	2/24/25	15,800		16,201
	Bank of New York Mellon Corp.	2.800%	5/4/26	11,141		11,275
4	Bank of New York Mellon Corp.	3.442%	2/7/28	41,250		43,011
	Bank of New York Mellon Corp.	3.000%	10/30/28	7,000		7,091
	Bank of Nova Scotia	3.400%	2/11/24	35,000		36,382
	Bank of Nova Scotia	2.700%	8/3/26	63,750		63,556
10	Banque Federative du Credit Mutuel SA	3.750%	7/20/23	51,710		53,893
	BB&T Corp.	3.750%	12/6/23	14,265		15,063
	BB&T Corp.	2.500%	8/1/24	40,000		39,864
	BB&T Corp.	2.850%	10/26/24	5,000		5,068
	BB&T Corp.	3.875%	3/19/29	10,000		10,665
	BNP Paribas SA	3.250%	3/3/23	6,235		6,411
	BPCE SA	3.375%	12/2/26	10,000		10,340
10	BPCE SA	3.250%	1/11/28	20,000		20,329
7,11	BPCE SA, 3M Australian Bank Bill Rate + 1.100%	2.140%	4/26/23	22,200		15,195
	Branch Banking & Trust Co.	3.625%	9/16/25	22,495		23,530
	Canadian Imperial Bank of Commerce	3.500%	9/13/23	34,510		35,952
	Canadian Imperial Bank of Commerce	3.100%	4/2/24	36,400		36,966
	Capital One Financial Corp.	3.050%	3/9/22	12,715		12,869
12	Citigroup Inc.	2.750%	1/24/24	4,005		5,129

53

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Citigroup Inc.	3.400%	5/1/26	35,000		36,196
	Citigroup Inc.	3.200%	10/21/26	111,245		113,649
4	Citigroup Inc.	3.520%	10/27/28	20,000		20,638
4	Citigroup Inc.	3.980%	3/20/30	30,000		32,011
	Citizens Bank NA	3.750%	2/18/26	45,500		48,055
	Comerica Inc.	3.700%	7/31/23	31,170		32,462
10	Commonwealth Bank of Australia	5.000%	10/15/19	2,702		2,717
	Commonwealth Bank of Australia	2.300%	3/12/20	3,000		2,999
	Commonwealth Bank of Australia	2.400%	11/2/20	1,990		1,991
10	Commonwealth Bank of Australia	3.450%	3/16/23	8,396		8,696
10	Commonwealth Bank of Australia	3.350%	6/4/24	40,650		42,305
10	Commonwealth Bank of Australia	3.150%	9/19/27	26,935		27,878
7,11	Commonwealth Bank of Australia, 3M Australian Bank Bill Rate + 2.650%	4.050%	6/3/26	300		211
10	Cooperatieve Rabobank UA	3.875%	9/26/23	15,995		16,816
	Cooperatieve Rabobank UA	4.625%	12/1/23	78,434		83,794
10	Cooperatieve Rabobank UA	2.625%	7/22/24	20,260		20,206
12	Cooperatieve Rabobank UA	4.625%	5/23/29	5,000		7,198
7,11	Cooperatieve Rabobank UA, 3M Australian Bank Bill Rate + 2.500%	3.677%	7/2/25	16,450		11,400
	Credit Suisse AG	3.625%	9/9/24	67,150		70,445
	Credit Suisse Group Funding Guernsey Ltd.	3.750%	3/26/25	5,000		5,203
13	Danske Bank A/S	0.500%	5/6/21	10,550		11,632
	Discover Bank	7.000%	4/15/20	3,665		3,780
	Discover Financial Services	4.500%	1/30/26	25,000		26,923
	Fifth Third Bancorp	3.650%	1/25/24	30,000		31,372
	Goldman Sachs Group Inc.	3.850%	7/8/24	25,937		27,201
	Goldman Sachs Group Inc.	3.500%	1/23/25	35,325		36,491
	Goldman Sachs Group Inc.	3.750%	5/22/25	86,497		90,279
4	Goldman Sachs Group Inc.	3.272%	9/29/25	50,805		51,783
	Goldman Sachs Group Inc.	3.850%	1/26/27	47,500		49,777
4	Goldman Sachs Group Inc.	3.691%	6/5/28	24,797		25,678
4	Goldman Sachs Group Inc.	3.814%	4/23/29	14,915		15,588
4	Goldman Sachs Group Inc.	4.223%	5/1/29	33,225		35,699
7,11	Goldman Sachs Group Inc., 3M Australian Bank Bill Rate + 1.200%	2.825%	5/16/23	10,000		6,845
7,11	Goldman Sachs Group Inc., 3M Australian Bank Bill Rate + 1.550%	3.100%	5/2/24	30,700		21,240
4	HSBC Holdings plc	3.950%	5/18/24	1,135		1,180
4	HSBC Holdings plc	3.803%	3/11/25	68,230		70,475
	HSBC Holdings plc	4.300%	3/8/26	25,950		27,766
	HSBC Holdings plc	3.900%	5/25/26	31,015		32,454
4	HSBC Holdings plc	4.292%	9/12/26	28,050		29,773
	HSBC Holdings plc	4.375%	11/23/26	9,010		9,563
4	HSBC Holdings plc	4.041%	3/13/28	65,599		68,222
4	HSBC Holdings plc	4.583%	6/19/29	41,988		45,639
4	HSBC Holdings plc	3.973%	5/22/30	25,365		26,486
7,11	HSBC Holdings plc, 3M Australian Bank Bill Rate + 1.100%	2.725%	2/16/24	28,200		19,223
	Huntington Bancshares Inc.	4.350%	2/4/23	9,000		9,414
	Huntington National Bank	2.400%	4/1/20	7,000		7,000
	Huntington National Bank	2.500%	8/7/22	28,610		28,699
	Huntington National Bank	3.550%	10/6/23	33,235		34,682
	ING Groep NV	3.950%	3/29/27	12,600		13,344
	ING Groep NV	4.050%	4/9/29	20,000		21,582
	JPMorgan Chase & Co.	3.625%	5/13/24	24,485		25,696
	JPMorgan Chase & Co.	3.125%	1/23/25	21,865		22,374
4	JPMorgan Chase & Co.	3.220%	3/1/25	80,536		82,702
	JPMorgan Chase & Co.	3.900%	7/15/25	30,940		32,928
	JPMorgan Chase & Co.	3.300%	4/1/26	3,910		4,046
	JPMorgan Chase & Co.	3.200%	6/15/26	52,666		54,151
4	JPMorgan Chase & Co.	3.960%	1/29/27	10,000		10,672
4,13	JPMorgan Chase & Co.	1.090%	3/11/27	7,300		8,475
4	JPMorgan Chase & Co.	3.540%	5/1/28	27,820		29,031

54

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	JPMorgan Chase & Co.	3.509%	1/23/29	42,408		44,117
4	JPMorgan Chase & Co.	4.005%	4/23/29	47,885		51,529
4	JPMorgan Chase & Co.	3.882%	7/24/38	5,640		5,944
	KeyBank NA	3.300%	6/1/25	20,000		20,849
	KeyCorp	4.100%	4/30/28	15,000		16,361
4	Lloyds Banking Group plc	2.907%	11/7/23	35,695		35,501
	Lloyds Banking Group plc	3.900%	3/12/24	20,000		20,689
11	Lloyds Banking Group plc	4.000%	3/7/25	2,300		1,681
	Lloyds Banking Group plc	4.450%	5/8/25	68,000		71,910
	Lloyds Banking Group plc	4.375%	3/22/28	15,000		15,870
	Lloyds Banking Group plc	4.550%	8/16/28	71,000		76,233
7,11	Lloyds Banking Group plc, 3M Australian Bank Bill Short Term Rate + 1.400%	2.769%	3/7/25	19,000		12,759
4,10	Macquarie Group Ltd.	3.189%	11/28/23	5,055		5,123
4	Macquarie Group Ltd.	3.189%	11/28/23	12,500		12,668
7,11	Macquarie Group Ltd., 3M Australian Bank Bill Rate + 1.150%	2.450%	12/15/22	31,590		21,686
	Manufacturers & Traders Trust Co.	2.500%	5/18/22	6,740		6,760
	Mitsubishi UFJ Financial Group Inc.	3.761%	7/26/23	79,890		83,249
	Mitsubishi UFJ Financial Group Inc.	2.527%	9/13/23	8,975		8,928
	Mitsubishi UFJ Financial Group Inc.	3.407%	3/7/24	41,665		43,054
	Mitsubishi UFJ Financial Group Inc.	3.777%	3/2/25	107,697		113,622
	Mitsubishi UFJ Financial Group Inc.	3.850%	3/1/26	8,375		8,886
	Mitsubishi UFJ Financial Group Inc.	2.757%	9/13/26	5,555		5,519
	Mitsubishi UFJ Financial Group Inc.	3.677%	2/22/27	4,920		5,192
	Mitsubishi UFJ Financial Group Inc.	3.741%	3/7/29	53,000		56,263
	Mitsubishi UFJ Financial Group Inc.	3.195%	7/18/29	77,000		78,033
10	Mitsubishi UFJ Trust & Banking Corp.	2.650%	10/19/20	29,055		29,142
10	Mizuho Financial Group Inc.	3.477%	4/12/26	10,000		10,387
4	Mizuho Financial Group Inc.	3.153%	7/16/30	21,600		21,816
	Morgan Stanley	3.875%	4/29/24	16,900		17,832
	Morgan Stanley	3.700%	10/23/24	15,525		16,290
4	Morgan Stanley	2.720%	7/22/25	39,300		39,386
	Morgan Stanley	4.000%	7/23/25	63,431		67,667
	Morgan Stanley	3.875%	1/27/26	85,427		90,526
	Morgan Stanley	3.625%	1/20/27	69,180		72,204
4	Morgan Stanley	3.591%	7/22/28	9,285		9,622
	MUFG Americas Holdings Corp.	3.500%	6/18/22	21,891		22,411
	MUFG Americas Holdings Corp.	3.000%	2/10/25	9,600		9,688
4,10	National Australia Bank Ltd.	3.933%	8/2/34	15,000		15,080
4,13	Nationwide Building Society	2.000%	7/25/29	7,580		8,371
4,10	Nationwide Building Society	3.960%	7/18/30	10,000		10,069
	PNC Bank NA	3.300%	10/30/24	44,634		46,214
	PNC Bank NA	2.950%	2/23/25	31,289		31,803
	PNC Bank NA	3.250%	6/1/25	61,052		62,987
	PNC Financial Services Group Inc.	2.600%	7/23/26	43,000		42,904
	PNC Financial Services Group Inc.	3.450%	4/23/29	101,000		105,705
	Regions Financial Corp.	2.750%	8/14/22	4,170		4,190
	Royal Bank of Canada	3.700%	10/5/23	17,740		18,599
	Royal Bank of Canada	2.550%	7/16/24	40,000		40,014
	Royal Bank of Scotland Group plc	3.875%	9/12/23	1,000		1,018
4	Royal Bank of Scotland Group plc	4.269%	3/22/25	25,000		25,609
4	Royal Bank of Scotland Group plc	4.892%	5/18/29	12,750		13,570
4	Royal Bank of Scotland Group plc	4.445%	5/8/30	10,000		10,309
	Santander Holdings USA Inc.	3.500%	6/7/24	25,000		25,353
	Santander Holdings USA Inc.	4.400%	7/13/27	16,222		17,114
10	Santander UK Group Holdings plc	4.750%	9/15/25	17,061		17,560
	Santander UK plc	4.000%	3/13/24	26,360		27,636
	Santander UK plc	2.875%	6/18/24	19,750		19,743
	State Street Corp.	3.100%	5/15/23	15,025		15,339
	State Street Corp.	3.700%	11/20/23	32,620		34,406
4	State Street Corp.	3.776%	12/3/24	25,280		26,566
	State Street Corp.	3.300%	12/16/24	19,435		20,178
	State Street Corp.	3.550%	8/18/25	31,058		32,716

55

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Sumitomo Mitsui Financial Group Inc.	2.784%	7/12/22	34,275		34,557
	Sumitomo Mitsui Financial Group Inc.	2.778%	10/18/22	24,000		24,181
	Sumitomo Mitsui Financial Group Inc.	3.748%	7/19/23	20,840		21,752
	Sumitomo Mitsui Financial Group Inc.	2.696%	7/16/24	58,250		58,153
	Sumitomo Mitsui Financial Group Inc.	3.784%	3/9/26	35,000		37,067
	Sumitomo Mitsui Financial Group Inc.	2.632%	7/14/26	37,525		37,251
	Sumitomo Mitsui Financial Group Inc.	3.446%	1/11/27	18,200		18,938
	Sumitomo Mitsui Financial Group Inc.	3.544%	1/17/28	8,870		9,317
	Sumitomo Mitsui Financial Group Inc.	3.040%	7/16/29	114,000		114,214
	SunTrust Bank	4.050%	11/3/25	35,000		37,763
	SunTrust Bank	3.200%	4/1/24	120,925		124,502
	SunTrust Banks Inc.	4.000%	5/1/25	19,351		20,638
	Svenska Handelsbanken AB	3.900%	11/20/23	21,450		22,719
	Synchrony Bank	3.000%	6/15/22	9,965		10,024
	Synchrony Financial	3.700%	8/4/26	19,720		19,842
	Toronto-Dominion Bank	3.500%	7/19/23	56,760		59,299
	Toronto-Dominion Bank	2.650%	6/12/24	15,000		15,125
4,10	UBS Group Funding Switzerland AG	2.859%	8/15/23	82,205		82,698
10	UBS Group Funding Switzerland AG	4.125%	9/24/25	20,922		22,291
10	UBS Group Funding Switzerland AG	4.125%	4/15/26	5,000		5,330
4	United Overseas Bank Ltd.	3.750%	9/19/24	5,000		5,005
4	United Overseas Bank Ltd.	2.880%	3/8/27	3,000		2,984
	US Bancorp	3.700%	1/30/24	41,765		44,127
	US Bancorp	3.375%	2/5/24	12,355		12,871
	US Bancorp	2.400%	7/30/24	43,200		43,073
	US Bancorp	3.600%	9/11/24	14,800		15,465
	US Bancorp	3.950%	11/17/25	25,550		27,637
	US Bancorp	3.100%	4/27/26	10,454		10,661
	US Bancorp	2.375%	7/22/26	26,525		26,237
	US Bancorp	3.000%	7/30/29	22,000		22,066
	US Bank NA	2.800%	1/27/25	14,400		14,668
§,*	Washington Mutual Bank / Debt not acquired by JPMorgan	5.500%	1/15/13	6,147		1
§,*	Washington Mutual Bank / Debt not acquired by JPMorgan	5.650%	8/15/14	7,500		1
§,*	Washington Mutual Bank / Debt not acquired by JPMorgan	5.125%	1/15/15	9,000		1
	Wells Fargo & Co.	3.300%	9/9/24	29,199		30,096
	Wells Fargo & Co.	3.000%	2/19/25	50,700		51,555
	Wells Fargo & Co.	3.550%	9/29/25	17,459		18,224
	Wells Fargo & Co.	3.000%	4/22/26	47,841		48,263
	Wells Fargo & Co.	3.000%	10/23/26	32,560		32,865
4	Wells Fargo & Co.	3.196%	6/17/27	21,150		21,511
	Wells Fargo & Co.	4.150%	1/24/29	44,075		47,991
7,11	Wells Fargo & Co., 3M Australian Bank Bill Rate + 1.100%	2.128%	4/27/22	20,610		14,219
	Wells Fargo Bank NA	3.550%	8/14/23	72,420		75,348
	Westpac Banking Corp.	3.300%	2/26/24	42,800		44,377
	Westpac Banking Corp.	2.850%	5/13/26	23,795		24,150
	Westpac Banking Corp.	3.350%	3/8/27	63,790		67,078
4	Westpac Banking Corp.	4.322%	11/23/31	12,669		13,081
	Westpac Banking Corp.	4.110%	7/24/34	21,175		21,631
	Westpac Banking Corp.	4.421%	7/24/39	12,240		12,750
7,11	Westpac Banking Corp., 3M Australian Bank Bill Rate + 3.100%	4.466%	3/10/26	2,600		1,832
	Brokerage (1.4%)
	Ameriprise Financial Inc.	3.700%	10/15/24	25,000		26,391
	Ameriprise Financial Inc.	2.875%	9/15/26	1,986		2,001
10	Apollo Management Holdings LP	4.872%	2/15/29	1,825		1,990
	BlackRock Inc.	3.200%	3/15/27	2,075		2,167
	BlackRock Inc.	3.250%	4/30/29	45,250		47,328
13	Blackstone Property Partners Europe Holdings Sarl	2.200%	7/24/25	5,000		5,948
	Brookfield Finance Inc.	4.850%	3/29/29	7,200		7,835

56

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Charles Schwab Corp.	3.850%	5/21/25	51,027		54,475
	Charles Schwab Corp.	3.200%	1/25/28	24,899		25,699
	Charles Schwab Corp.	4.000%	2/1/29	27,527		30,281
	Charles Schwab Corp.	3.250%	5/22/29	42,000		43,532
	Intercontinental Exchange Inc.	4.000%	10/15/23	34,330		36,409
	Invesco Finance plc	4.000%	1/30/24	21,300		22,463
	Invesco Finance plc	3.750%	1/15/26	6,673		6,993
	Lazard Group LLC	4.500%	9/19/28	37,671		40,254
§,*	Lehman Brothers Holdings Inc.	6.500%	7/19/17	20,000		2
	Stifel Financial Corp.	4.250%	7/18/24	14,785		15,435
	TD Ameritrade Holding Corp.	3.625%	4/1/25	46,330		48,333
	TD Ameritrade Holding Corp.	3.300%	4/1/27	2,000		2,049
	Finance Companies (0.0%)
	Air Lease Corp.	3.625%	4/1/27	5,000		5,045
	Insurance (3.3%)
	Aetna Inc.	3.500%	11/15/24	10,000		10,289
	Aflac Inc.	3.625%	11/15/24	9,000		9,480
	Aflac Inc.	3.250%	3/17/25	5,995		6,189
10	AIA Group Ltd.	3.600%	4/9/29	37,366		39,109
4	Allstate Corp.	5.750%	8/15/53	5,000		5,300
	Anthem Inc.	3.650%	12/1/27	10,000		10,335
	Assurant Inc.	4.200%	9/27/23	10,000		10,386
	AXIS Specialty Finance LLC	5.875%	6/1/20	4,600		4,727
	Berkshire Hathaway Inc.	2.750%	3/15/23	64,513		65,763
	Berkshire Hathaway Inc.	3.125%	3/15/26	15,066		15,575
13	Berkshire Hathaway Inc.	1.125%	3/16/27	3,500		4,141
	Chubb INA Holdings Inc.	2.700%	3/13/23	20,325		20,619
	Chubb INA Holdings Inc.	3.350%	5/15/24	39,741		41,426
	Chubb INA Holdings Inc.	3.150%	3/15/25	18,772		19,480
	Chubb INA Holdings Inc.	3.350%	5/3/26	41,930		44,070
	CNA Financial Corp.	3.900%	5/1/29	20,000		20,926
	Enstar Group Ltd.	4.950%	6/1/29	20,580		21,086
10	Five Corners Funding Trust	4.419%	11/15/23	27,362		29,179
	Humana Inc.	3.950%	3/15/27	7,300		7,643
	Lincoln National Corp.	3.625%	12/12/26	12,463		12,947
	Lincoln National Corp.	3.800%	3/1/28	6,276		6,581
	Loews Corp.	2.625%	5/15/23	8,000		8,073
	Manulife Financial Corp.	4.900%	9/17/20	24,150		24,800
	Marsh & McLennan Cos. Inc.	3.300%	3/14/23	8,345		8,549
	Marsh & McLennan Cos. Inc.	4.050%	10/15/23	10,087		10,639
	Marsh & McLennan Cos. Inc.	3.500%	6/3/24	41,425		42,922
	Marsh & McLennan Cos. Inc.	3.500%	3/10/25	30,636		31,773
	Marsh & McLennan Cos. Inc.	4.375%	3/15/29	12,000		13,326
10	MassMutual Global Funding II	2.750%	6/22/24	30,285		30,713
10	Metropolitan Life Global Funding I	3.600%	1/11/24	7,390		7,764
10	Metropolitan Life Global Funding I	3.450%	12/18/26	12,520		13,132
10	Nuveen Finance LLC	4.125%	11/1/24	34,863		37,383
12	Pension Insurance Corp. plc	8.000%	11/23/26	1,980		2,922
	Principal Financial Group Inc.	3.100%	11/15/26	6,110		6,207
	Principal Financial Group Inc.	3.700%	5/15/29	21,200		22,360
10	Protective Life Corp.	4.300%	9/30/28	22,900		24,394
4	Prudential Financial Inc.	5.200%	3/15/44	2,500		2,603
4	Prudential Financial Inc.	5.375%	5/15/45	3,575		3,807
	Reinsurance Group of America Inc.	3.950%	9/15/26	24,825		26,044
10	Reliance Standard Life Global Funding II	3.850%	9/19/23	17,750		18,386
10	Swiss Re Treasury US Corp.	2.875%	12/6/22	7,640		7,683
	UnitedHealth Group Inc.	2.750%	2/15/23	12,000		12,147
	UnitedHealth Group Inc.	2.875%	3/15/23	9,000		9,168
	UnitedHealth Group Inc.	2.375%	8/15/24	4,850		4,841
	UnitedHealth Group Inc.	3.750%	7/15/25	46,692		49,693
	UnitedHealth Group Inc.	3.100%	3/15/26	3,633		3,751
	UnitedHealth Group Inc.	3.450%	1/15/27	6,200		6,504

57

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	UnitedHealth Group Inc.	3.375%	4/15/27	28,280		29,656
	UnitedHealth Group Inc.	2.950%	10/15/27	14,048		14,287
	UnitedHealth Group Inc.	3.875%	12/15/28	25,000		27,104
	UnitedHealth Group Inc.	2.875%	8/15/29	91,740		91,875
	Voya Financial Inc.	5.700%	7/15/43	3,758		4,643
4,13	XLIT Ltd.	3.250%	6/29/47	4,216		5,128
	Other Finance (0.0%)
12	Aroundtown SA	3.250%	7/18/27	3,400		4,286
13	Aroundtown SA	1.625%	1/31/28	3,400		3,910
	Real Estate Investment Trusts (3.2%)
	Alexandria Real Estate Equities Inc.	3.450%	4/30/25	20,715		21,344
	Alexandria Real Estate Equities Inc.	3.950%	1/15/28	1,975		2,098
	AvalonBay Communities Inc.	2.850%	3/15/23	12,400		12,570
	AvalonBay Communities Inc.	2.950%	5/11/26	20,000		20,434
	AvalonBay Communities Inc.	2.900%	10/15/26	6,500		6,607
	AvalonBay Communities Inc.	3.350%	5/15/27	12,040		12,605
	AvalonBay Communities Inc.	3.200%	1/15/28	14,750		15,295
	AvalonBay Communities Inc.	3.300%	6/1/29	25,000		26,072
	Brandywine Operating Partnership LP	4.100%	10/1/24	20,570		21,392
	Brixmor Operating Partnership LP	4.125%	6/15/26	58,703		61,333
	Camden Property Trust	4.250%	1/15/24	3,860		4,079
	Camden Property Trust	3.500%	9/15/24	1,135		1,181
	Camden Property Trust	4.100%	10/15/28	26,790		29,306
	Camden Property Trust	3.150%	7/1/29	22,660		23,129
	Columbia Property Trust Operating Partnership LP	4.150%	4/1/25	7,985		8,195
	Columbia Property Trust Operating Partnership LP	3.650%	8/15/26	9,787		9,668
	CubeSmart LP	4.375%	2/15/29	12,000		12,827
	Digital Realty Trust LP	4.750%	10/1/25	5,645		6,160
	Digital Realty Trust LP	3.700%	8/15/27	35,300		36,522
	Digital Realty Trust LP	3.600%	7/1/29	20,000		20,439
	ERP Operating LP	3.375%	6/1/25	21,000		21,872
	ERP Operating LP	4.150%	12/1/28	12,655		14,018
	Federal Realty Investment Trust	3.950%	1/15/24	8,269		8,724
	Federal Realty Investment Trust	3.250%	7/15/27	3,665		3,751
	Federal Realty Investment Trust	3.200%	6/15/29	10,000		10,188
	HCP Inc.	4.250%	11/15/23	5,400		5,745
	HCP Inc.	4.200%	3/1/24	8,055		8,571
	HCP Inc.	3.400%	2/1/25	5,605		5,746
	HCP Inc.	4.000%	6/1/25	17,800		18,733
	HCP Inc.	3.250%	7/15/26	8,535		8,621
	HCP Inc.	3.500%	7/15/29	13,820		13,950
	Healthcare Trust of America Holdings LP	3.500%	8/1/26	14,800		15,026
	Healthcare Trust of America Holdings LP	3.750%	7/1/27	19,455		20,068
	Highwoods Realty LP	3.875%	3/1/27	19,500		20,117
	Kimco Realty Corp.	3.125%	6/1/23	9,106		9,238
	Kimco Realty Corp.	3.300%	2/1/25	19,940		20,320
	Kimco Realty Corp.	2.800%	10/1/26	7,148		7,048
	Liberty Property LP	4.400%	2/15/24	9,900		10,543
	Liberty Property LP	3.750%	4/1/25	5,000		5,175
	Liberty Property LP	4.375%	2/1/29	15,000		16,308
	Mid-America Apartments LP	4.300%	10/15/23	2,135		2,264
	Mid-America Apartments LP	4.000%	11/15/25	7,620		8,061
	Mid-America Apartments LP	3.950%	3/15/29	18,230		19,419
	National Retail Properties Inc.	4.000%	11/15/25	2,100		2,215
	Omega Healthcare Investors Inc.	4.950%	4/1/24	15,002		15,883
	Omega Healthcare Investors Inc.	4.500%	1/15/25	1,016		1,060
	Omega Healthcare Investors Inc.	5.250%	1/15/26	6,478		7,029
	Omega Healthcare Investors Inc.	4.750%	1/15/28	5,637		5,975
	Public Storage	3.385%	5/1/29	32,247		33,907
	Realty Income Corp.	3.875%	4/15/25	25,140		26,784
	Realty Income Corp.	4.125%	10/15/26	30,000		32,560
	Realty Income Corp.	3.650%	1/15/28	10,371		10,936
	Realty Income Corp.	3.250%	6/15/29	36,920		37,805

58

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Sabra Health Care LP / Sabra Capital Corp.	4.800%	6/1/24	17,000		17,505
10	Scentre Group Trust 1 / Scentre Group Trust 2	3.750%	3/23/27	13,925		14,360
	Simon Property Group LP	2.750%	2/1/23	5,500		5,562
	Simon Property Group LP	3.750%	2/1/24	28,466		29,968
	Simon Property Group LP	3.375%	10/1/24	4,000		4,166
	Simon Property Group LP	3.500%	9/1/25	12,997		13,582
	Simon Property Group LP	3.300%	1/15/26	9,920		10,254
	Simon Property Group LP	3.250%	11/30/26	24,545		25,374
	Simon Property Group LP	3.375%	12/1/27	13,225		13,818
	Tanger Properties LP	3.875%	12/1/23	10,550		10,775
	Ventas Realty LP	3.500%	2/1/25	4,920		5,096
	Welltower Inc.	3.750%	3/15/23	13,439		13,945
	Welltower Inc.	4.250%	4/15/28	2,540		2,730
	Welltower Inc.	4.125%	3/15/29	10,000		10,685
						8,999,364
Industrial (31.1%)
	Basic Industry (1.0%)
10	Air Liquide Finance SA	2.250%	9/27/23	45,308		44,979
10	Air Liquide Finance SA	2.500%	9/27/26	19,850		19,567
	Celulosa Arauco y Constitucion SA	5.500%	11/2/47	5,200		5,714
10	Chevron Phillips Chemical Co LLC / Chevron Phillips Chemical Co LP	3.400%	12/1/26	9,680		9,952
10	Chevron Phillips Chemical Co LLC / Chevron Phillips Chemical Co LP	3.700%	6/1/28	32,331		33,730
10	Dow Chemical Co.	3.625%	5/15/26	15,000		15,486
	DuPont de Nemours Inc.	4.493%	11/15/25	40,000		43,793
	Eastman Chemical Co.	3.800%	3/15/25	5,287		5,518
	Eastman Chemical Co.	4.500%	12/1/28	10,000		10,873
11	Glencore Australia Holdings Pty Ltd.	4.500%	9/19/19	2,500		1,715
	Nutrien Ltd.	3.375%	3/15/25	20,308		20,807
	Nutrien Ltd.	3.000%	4/1/25	10,475		10,533
10	Suzano Austria GmbH	7.000%	3/16/47	3,333		3,869
	Vale Overseas Ltd.	6.250%	8/10/26	6,000		6,810
13	Vale SA	3.750%	1/10/23	15,080		18,026
	WRKCo Inc.	3.000%	9/15/24	17,995		17,954
	WRKCo Inc.	4.650%	3/15/26	19,795		21,556
	WRKCo Inc.	3.900%	6/1/28	14,630		15,071
	Capital Goods (2.4%)
	3M Co.	3.375%	3/1/29	29,000		30,651
13	Airbus Finance BV	2.375%	4/2/24	14,000		17,284
10	Airbus SE	3.150%	4/10/27	16,201		16,736
	Ball Corp.	4.875%	3/15/26	1,820		1,927
10	Berry Global Escrow Corp.	4.875%	7/15/26	2,730		2,841
	Boeing Co.	2.600%	10/30/25	4,500		4,485
	Boeing Co.	3.100%	5/1/26	28,600		29,534
	Boeing Co.	2.250%	6/15/26	25,350		24,628
	Boeing Co.	2.700%	2/1/27	22,000		21,938
	Boeing Co.	2.800%	3/1/27	9,015		9,020
	Boeing Co.	3.250%	3/1/28	1,316		1,351
	Boeing Co.	3.450%	11/1/28	6,875		7,225
	Boeing Co.	3.200%	3/1/29	9,900		10,143
	Caterpillar Financial Services Corp.	2.625%	3/1/23	14,845		14,951
	Caterpillar Financial Services Corp.	3.750%	11/24/23	24,995		26,466
	Caterpillar Financial Services Corp.	3.300%	6/9/24	305		318
10	CFX Escrow Corp.	6.000%	2/15/24	1,600		1,692
10	Clean Harbors Inc.	4.875%	7/15/27	2,725		2,807
10	Clean Harbors Inc.	5.125%	7/15/29	2,730		2,866
	Embraer Netherlands Finance BV	5.050%	6/15/25	8,260		8,951
	Embraer Netherlands Finance BV	5.400%	2/1/27	4,100		4,573
	Embraer Overseas Ltd.	5.696%	9/16/23	582		640
	Embraer SA	5.150%	6/15/22	8,000		8,466
	General Dynamics Corp.	2.625%	11/15/27	17,000		17,178
	Honeywell International Inc.	2.500%	11/1/26	16,912		16,926

59

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Illinois Tool Works Inc.	2.650%	11/15/26	10,933		11,088
	Johnson Controls International plc	3.900%	2/14/26	2,621		2,740
10	L3Harris Technologies Inc.	4.400%	6/15/28	2,612		2,872
	Lockheed Martin Corp.	3.550%	1/15/26	56,963		60,417
10	Masonite International Corp.	5.375%	2/1/28	1,815		1,860
10	Mueller Water Products Inc.	5.500%	6/15/26	10,260		10,735
	Northrop Grumman Corp.	3.250%	1/15/28	10,000		10,252
	Owens Corning	3.950%	8/15/29	11,250		11,233
	Parker-Hannifin Corp.	2.700%	6/14/24	62,225		62,523
	Parker-Hannifin Corp.	3.300%	11/21/24	10,060		10,391
	Parker-Hannifin Corp.	3.250%	6/14/29	18,151		18,576
	Precision Castparts Corp.	3.250%	6/15/25	13,470		14,010
	Republic Services Inc.	2.500%	8/15/24	30,000		29,997
10	Resideo Funding Inc.	6.125%	11/1/26	5,037		5,308
	Reynolds Group Issuer Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu	6.875%	2/15/21	1,998		1,998
7,10	Reynolds Group Issuer Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu, 3M USD LIBOR + 3.500%	5.803%	7/15/21	2,972		2,976
	Rockwell Collins Inc.	3.500%	3/15/27	23,154		24,304
	Stanley Black & Decker Inc.	3.400%	3/1/26	30,000		31,370
	TransDigm Inc.	6.500%	7/15/24	2,720		2,791
10	TransDigm Inc.	6.250%	3/15/26	11,325		11,920
10	Trivium Packaging Finance BV	5.500%	8/15/26	1,800		1,856
10	Trivium Packaging Finance BV	8.500%	8/15/27	900		950
	United Rentals North America Inc.	4.625%	10/15/25	5,290		5,369
	United Rentals North America Inc.	6.500%	12/15/26	4,385		4,736
	United Rentals North America Inc.	5.500%	5/15/27	3,336		3,482
	United Technologies Corp.	3.125%	5/4/27	70,965		73,115
	United Technologies Corp.	4.125%	11/16/28	15,000		16,566
	Waste Management Inc.	3.200%	6/15/26	20,000		20,806
	Communication (4.1%)
	America Movil SAB de CV	5.000%	3/30/20	4,404		4,477
	American Tower Corp.	3.000%	6/15/23	32,000		32,492
	American Tower Corp.	3.950%	3/15/29	20,000		21,001
	AT&T Inc.	3.950%	1/15/25	10,000		10,540
	AT&T Inc.	3.400%	5/15/25	54,199		55,742
	AT&T Inc.	4.125%	2/17/26	31,675		33,762
10	CCO Holdings LLC / CCO Holdings Capital Corp.	5.375%	6/1/29	1,816		1,880
	Charter Communications Operating LLC / Charter Communications Operating Capital	4.908%	7/23/25	37,008		39,890
	Charter Communications Operating LLC / Charter Communications Operating Capital	3.750%	2/15/28	19,190		19,257
	Charter Communications Operating LLC / Charter Communications Operating Capital	4.200%	3/15/28	5,000		5,177
	Charter Communications Operating LLC / Charter Communications Operating Capital	5.050%	3/30/29	8,100		8,882
	Comcast Cable Communications Holdings Inc.	9.455%	11/15/22	9,966		12,211
	Comcast Corp.	3.375%	2/15/25	44,621		46,443
	Comcast Corp.	3.375%	8/15/25	107,848		112,563
	Comcast Corp.	3.950%	10/15/25	32,325		34,753
	Comcast Corp.	3.150%	3/1/26	34,557		35,730
	Comcast Corp.	2.350%	1/15/27	38,826		37,929
	Comcast Corp.	3.150%	2/15/28	32,439		33,292
	Comcast Corp.	4.150%	10/15/28	66,025		72,725
	Crown Castle International Corp.	4.450%	2/15/26	37,476		40,707
	Crown Castle International Corp.	3.700%	6/15/26	51,292		53,509
10	CSC Holdings LLC	5.375%	2/1/28	2,955		3,073
10	CSC Holdings LLC	6.500%	2/1/29	8,805		9,708
10	Deutsche Telekom International Finance BV	4.375%	6/21/28	9,350		10,180
	Discovery Communications LLC	4.900%	3/11/26	43,685		47,829
	Discovery Communications LLC	3.950%	3/20/28	18,320		18,902
	Discovery Communications LLC	4.125%	5/15/29	20,000		20,785

60

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
10	Fox Corp.	4.709%	1/25/29	28,885		32,312
	Grupo Televisa SAB	5.250%	5/24/49	13,510		13,981
	Netflix Inc.	4.375%	11/15/26	5,920		5,979
10	Nexstar Escrow Inc.	5.625%	7/15/27	895		926
	Omnicom Group Inc. / Omnicom Capital Inc	3.600%	4/15/26	12,549		13,006
13	Orange SA	1.000%	9/12/25	9,000		10,568
	Qwest Corp.	7.250%	9/15/25	4,554		5,072
	S&P Global Inc.	4.000%	6/15/25	6,905		7,466
	S&P Global Inc.	4.400%	2/15/26	21,420		23,693
	S&P Global Inc.	2.950%	1/22/27	10,649		10,762
10	Sirius XM Radio Inc.	4.625%	7/15/24	4,270		4,377
	Sprint Corp.	7.125%	6/15/24	1,825		1,994
	Sprint Corp.	7.625%	2/15/25	1,825		2,026
	T-Mobile USA Inc.	4.500%	2/1/26	4,900		4,986
	T-Mobile USA Inc.	4.750%	2/1/28	2,486		2,554
	Telefonica Emisiones SAU	4.103%	3/8/27	5,000		5,314
	Time Warner Entertainment Co. LP	8.375%	3/15/23	9,000		10,589
	Verizon Communications Inc.	3.376%	2/15/25	54,600		56,966
11	Verizon Communications Inc.	4.050%	2/17/25	9,430		7,107
	Verizon Communications Inc.	2.625%	8/15/26	58,791		58,630
	Verizon Communications Inc.	4.125%	3/16/27	100,000		108,265
	Viacom Inc.	3.875%	4/1/24	1,073		1,115
	Vodafone Group plc	4.375%	5/30/28	9,185		9,959
10	Walt Disney Co.	3.700%	10/15/25	6,535		6,992
10	Walt Disney Co.	3.375%	11/15/26	32,653		34,423
	Consumer Cyclical (3.6%)
10	1011778 BC ULC / New Red Finance Inc.	5.000%	10/15/25	15,160		15,482
10	Alimentation Couche-Tard Inc.	3.550%	7/26/27	61,728		63,161
10	Allison Transmission Inc.	4.750%	10/1/27	5,660		5,674
10	Allison Transmission Inc.	5.875%	6/1/29	1,240		1,316
	Amazon.com Inc.	3.150%	8/22/27	27,000		28,237
	American Axle & Manufacturing Inc.	6.500%	4/1/27	1,805		1,809
	American Honda Finance Corp.	2.900%	2/16/24	7,500		7,643
	AutoZone Inc.	3.125%	4/21/26	13,622		13,742
	AutoZone Inc.	3.750%	6/1/27	10,000		10,466
	Booking Holdings Inc.	3.550%	3/15/28	17,500		18,299
10	Churchill Downs Inc.	5.500%	4/1/27	2,275		2,383
10	Churchill Downs Inc.	4.750%	1/15/28	9,180		9,191
	Costco Wholesale Corp.	2.750%	5/18/24	16,620		17,025
	Costco Wholesale Corp.	3.000%	5/18/27	32,539		33,678
	Cummins Inc.	3.650%	10/1/23	7,500		7,892
10	Eagle Intermediate Global Holding BV/Ruyi US Finance LLC	7.500%	5/1/25	9,350		8,801
	Ford Motor Credit Co. LLC	4.389%	1/8/26	8,000		8,024
	General Motors Co.	5.000%	10/1/28	15,000		15,816
	General Motors Financial Co. Inc.	5.100%	1/17/24	40,000		42,872
	General Motors Financial Co. Inc.	3.500%	11/7/24	15,685		15,734
	General Motors Financial Co. Inc.	4.000%	1/15/25	10,000		10,171
	General Motors Financial Co. Inc.	4.350%	4/9/25	20,750		21,444
	General Motors Financial Co. Inc.	4.300%	7/13/25	14,123		14,555
	General Motors Financial Co. Inc.	4.000%	10/6/26	10,000		10,077
	General Motors Financial Co. Inc.	4.350%	1/17/27	22,000		22,457
	GLP Capital LP / GLP Financing II Inc.	5.750%	6/1/28	9,150		10,237
	GLP Capital LP / GLP Financing II Inc.	5.300%	1/15/29	10,000		10,875
10	Harley-Davidson Financial Services Inc.	2.150%	2/26/20	3,945		3,931
10	Harley-Davidson Financial Services Inc.	2.550%	6/9/22	15,320		15,188
	Harley-Davidson Inc.	3.500%	7/28/25	17,000		17,392
	Hilton Domestic Operating Co. Inc.	5.125%	5/1/26	11,027		11,440
	Home Depot Inc.	3.000%	4/1/26	5,000		5,157
	Home Depot Inc.	2.125%	9/15/26	10,000		9,780
	Home Depot Inc.	2.800%	9/14/27	10,000		10,179
	Home Depot Inc.	3.900%	12/6/28	26,250		29,007
	Home Depot Inc.	2.950%	6/15/29	32,000		32,686

61

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Lennar Corp.	5.250%	6/1/26	1,560		1,659
	Lowe’s Cos. Inc.	3.875%	9/15/23	4,750		4,982
	Lowe’s Cos. Inc.	3.125%	9/15/24	8,505		8,754
	Lowe’s Cos. Inc.	2.500%	4/15/26	5,067		4,987
	Lowe’s Cos. Inc.	3.100%	5/3/27	10,000		10,155
	Lowe’s Cos. Inc.	3.650%	4/5/29	28,500		29,707
	Macy’s Retail Holdings Inc.	2.875%	2/15/23	7,500		7,387
	Mastercard Inc.	3.375%	4/1/24	16,000		16,828
	Mastercard Inc.	2.950%	11/21/26	18,315		18,943
	Mastercard Inc.	2.950%	6/1/29	19,000		19,503
	McDonald’s Corp.	3.375%	5/26/25	12,455		12,994
	MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer Inc.	5.625%	5/1/24	2,850		3,042
	MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer Inc.	4.500%	9/1/26	1,481		1,520
10	Panther BF Aggregator 2 LP / Panther Finance Co. Inc.	8.500%	5/15/27	4,530		4,604
10	Performance Food Group Inc.	5.500%	6/1/24	12,160		12,282
	PulteGroup Inc.	5.500%	3/1/26	2,735		2,950
	Target Corp.	2.500%	4/15/26	2,500		2,522
	Target Corp.	3.375%	4/15/29	20,500		21,674
	TJX Cos. Inc.	2.500%	5/15/23	13,400		13,544
	TJX Cos. Inc.	2.250%	9/15/26	43,575		42,713
	Toyota Motor Credit Corp.	3.300%	1/12/22	7,375		7,559
	Toyota Motor Credit Corp.	3.650%	1/8/29	40,745		44,214
	Visa Inc.	3.150%	12/14/25	120,737		125,760
	Walmart Inc.	2.350%	12/15/22	1,160		1,169
	Walmart Inc.	3.400%	6/26/23	3,000		3,136
	Walmart Inc.	3.550%	6/26/25	10,000		10,650
	Walmart Inc.	3.050%	7/8/26	62,000		64,586
	Walmart Inc.	3.700%	6/26/28	50,000		54,542
	Consumer Noncyclical (7.5%)
	AbbVie Inc.	3.600%	5/14/25	9,865		10,164
	AbbVie Inc.	4.250%	11/14/28	65,000		69,131
	Allergan Funding SCS	3.800%	3/15/25	31,800		33,025
	Altria Group Inc.	4.400%	2/14/26	17,150		18,293
	AmerisourceBergen Corp.	3.450%	12/15/27	30,216		30,949
	Amgen Inc.	2.600%	8/19/26	5,000		4,938
	Anheuser-Busch InBev Worldwide Inc.	4.150%	1/23/25	35,000		37,613
	Anheuser-Busch InBev Worldwide Inc.	4.000%	4/13/28	18,062		19,508
	Anheuser-Busch InBev Worldwide Inc.	4.750%	1/23/29	91,350		103,678
10	Aramark Services Inc.	5.000%	2/1/28	4,390		4,577
	AstraZeneca plc	3.125%	6/12/27	15,000		15,344
	AstraZeneca plc	4.000%	1/17/29	5,000		5,438
12	BAT Capital Corp.	2.125%	8/15/25	6,750		8,268
10	BAT International Finance plc	3.950%	6/15/25	15,000		15,530
10	Bausch Health Cos. Inc.	7.000%	3/15/24	2,807		2,958
10	Bausch Health Cos. Inc.	5.750%	8/15/27	1,815		1,908
10	Bausch Health Cos. Inc.	7.000%	1/15/28	2,715		2,810
	Baxalta Inc.	4.000%	6/23/25	14,504		15,379
13	Bayer Capital Corp. BV	2.125%	12/15/29	4,000		4,843
	Becton Dickinson & Co.	3.700%	6/6/27	3,782		3,951
13	Becton Dickinson Euro Finance Sarl	1.208%	6/4/26	6,500		7,489
	Biogen Inc.	4.050%	9/15/25	15,000		16,044
	Boston Scientific Corp.	4.000%	3/1/29	10,000		10,846
10	Bristol-Myers Squibb Co.	2.900%	7/26/24	45,000		45,896
10	Bristol-Myers Squibb Co.	3.200%	6/15/26	74,375		76,889
10	Bristol-Myers Squibb Co.	3.400%	7/26/29	78,605		82,068
	Celgene Corp.	3.875%	8/15/25	13,500		14,330
	Celgene Corp.	3.450%	11/15/27	34,095		35,412
	CHRISTUS Health	4.341%	7/1/28	20,000		22,253
10	Cigna Corp.	4.375%	10/15/28	50,285		54,311
	Coca-Cola Co.	2.550%	6/1/26	4,300		4,363
	Coca-Cola Femsa SAB de CV	4.625%	2/15/20	2,900		2,929

62

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Coca-Cola Femsa SAB de CV	3.875%	11/26/23	4,000		4,186
	Constellation Brands Inc.	3.500%	5/9/27	5,635		5,815
	Constellation Brands Inc.	4.650%	11/15/28	10,000		11,174
	Constellation Brands Inc.	3.150%	8/1/29	24,075		24,075
10	Cosan Ltd.	5.500%	9/20/29	6,800		6,842
	Covidien International Finance SA	3.200%	6/15/22	13,500		13,823
	CVS Health Corp.	4.100%	3/25/25	74,900		78,754
	CVS Health Corp.	2.875%	6/1/26	25,000		24,791
	CVS Health Corp.	4.300%	3/25/28	72,460		76,910
	DaVita Inc.	5.125%	7/15/24	2,575		2,575
	DaVita Inc.	5.000%	5/1/25	1,015		995
	Dignity Health	3.812%	11/1/24	1,000		1,053
	Eli Lilly & Co.	3.100%	5/15/27	20,000		20,768
	Eli Lilly & Co.	3.375%	3/15/29	13,500		14,324
	Express Scripts Holding Co.	3.000%	7/15/23	5,959		6,021
	Express Scripts Holding Co.	3.500%	6/15/24	27,333		28,229
	Express Scripts Holding Co.	3.400%	3/1/27	23,951		24,378
	Gilead Sciences Inc.	2.500%	9/1/23	2,750		2,759
	Gilead Sciences Inc.	3.700%	4/1/24	70,110		73,616
	Gilead Sciences Inc.	3.500%	2/1/25	66,507		69,645
	Gilead Sciences Inc.	3.650%	3/1/26	41,600		43,861
	GlaxoSmithKline Capital Inc.	3.875%	5/15/28	15,000		16,399
	GlaxoSmithKline Capital plc	3.000%	6/1/24	35,000		35,971
	GlaxoSmithKline Capital plc	3.375%	6/1/29	50,000		52,782
	Grupo Bimbo SAB de CV	4.500%	1/25/22	4,060		4,202
	HCA Inc.	5.250%	4/15/25	7,000		7,709
	HCA Inc.	5.250%	6/15/26	50,497		55,610
	HCA Inc.	5.375%	9/1/26	5,989		6,491
	HCA Inc.	4.500%	2/15/27	10,000		10,600
	HCA Inc.	5.625%	9/1/28	1,611		1,776
	HCA Inc.	4.125%	6/15/29	30,000		30,712
10	Hologic Inc.	4.375%	10/15/25	2,975		3,023
	Hormel Foods Corp.	4.125%	4/15/21	625		642
	Kaiser Foundation Hospitals	3.150%	5/1/27	2,500		2,580
	Kimberly-Clark Corp.	3.625%	8/1/20	3,300		3,349
	Kroger Co.	2.950%	11/1/21	3,000		3,029
	Kroger Co.	3.400%	4/15/22	3,000		3,067
	Kroger Co.	3.500%	2/1/26	12,475		12,747
	Laboratory Corp. of America Holdings	3.600%	2/1/25	12,000		12,372
	McKesson Corp.	2.850%	3/15/23	5,000		5,017
	Mead Johnson Nutrition Co.	4.125%	11/15/25	5,000		5,436
13	Medtronic Global Holdings SCA	1.500%	7/2/39	1,800		2,061
	Medtronic Inc.	3.500%	3/15/25	74,286		78,878
	Merck & Co. Inc.	2.750%	2/10/25	5,599		5,718
	Merck & Co. Inc.	3.400%	3/7/29	35,000		37,217
	Mercy Health	4.302%	7/1/28	12,500		13,849
	Minerva Luxembourg SA	6.500%	9/20/26	4,540		4,647
10	Minerva Luxembourg SA	5.875%	1/19/28	7,500		7,341
	Molson Coors Brewing Co.	3.000%	7/15/26	18,000		17,916
	Mylan Inc.	4.550%	4/15/28	5,000		5,266
10	Nestle Holdings Inc.	3.500%	9/24/25	11,055		11,691
10	Nestle Holdings Inc.	3.625%	9/24/28	9,819		10,617
	Novartis Capital Corp.	3.100%	5/17/27	9,700		10,134
	PepsiCo Inc.	3.000%	10/15/27	2,500		2,596
	PepsiCo Inc.	2.625%	7/29/29	15,000		14,897
	Perrigo Finance Unlimited Co.	3.900%	12/15/24	6,000		5,985
	Pfizer Inc.	3.400%	5/15/24	17,095		17,979
	Pfizer Inc.	2.750%	6/3/26	5,000		5,072
	Pfizer Inc.	3.000%	12/15/26	21,573		22,288
	Pfizer Inc.	3.450%	3/15/29	45,000		47,670
	Philip Morris International Inc.	3.375%	8/11/25	10,000		10,379
	Philip Morris International Inc.	2.750%	2/25/26	16,057		16,107
	Philip Morris International Inc.	3.125%	3/2/28	20,000		20,212
13	Philip Morris International Inc.	0.800%	8/1/31	2,180		2,372

63

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
10	Post Holdings Inc.	5.500%	12/15/29	3,636		3,672
	Providence St. Joseph Health Obligated Group	2.746%	10/1/26	7,500		7,469
	Quest Diagnostics Inc.	4.700%	4/1/21	4,000		4,140
	Quest Diagnostics Inc.	3.500%	3/30/25	2,000		2,057
	Quest Diagnostics Inc.	3.450%	6/1/26	6,900		7,147
10	Reckitt Benckiser Treasury Services plc	2.750%	6/26/24	64,745		65,169
10	Reckitt Benckiser Treasury Services plc	3.000%	6/26/27	23,295		23,626
	Reynolds American Inc.	4.450%	6/12/25	87,408		92,725
10	Roche Holdings Inc.	3.350%	9/30/24	20,000		20,949
	Shire Acquisitions Investments Ireland DAC	3.200%	9/23/26	24,248		24,596
	SSM Health Care Corp.	3.688%	6/1/23	24,865		25,929
	Stryker Corp.	3.375%	5/15/24	5,000		5,200
	Thermo Fisher Scientific Inc.	2.950%	9/19/26	5,000		5,061
	Thermo Fisher Scientific Inc.	3.200%	8/15/27	5,000		5,124
	Tyson Foods Inc.	4.000%	3/1/26	25,000		26,620
	Tyson Foods Inc.	4.350%	3/1/29	15,000		16,534
	Unilever Capital Corp.	2.900%	5/5/27	7,000		7,171
	Zimmer Biomet Holdings Inc.	3.550%	4/1/25	16,000		16,524
	Energy (5.3%)
	Anadarko Petroleum Corp.	5.550%	3/15/26	14,475		16,234
	Baker Hughes a GE Co. LLC / Baker Hughes Co-Obligor Inc.	3.337%	12/15/27	30,000		30,392
	BP Capital Markets America Inc.	2.750%	5/10/23	54,532		55,245
	BP Capital Markets America Inc.	3.216%	11/28/23	29,455		30,354
	BP Capital Markets America Inc.	3.224%	4/14/24	26,774		27,646
	BP Capital Markets America Inc.	3.796%	9/21/25	38,119		40,632
	BP Capital Markets America Inc.	3.410%	2/11/26	42,800		44,722
	BP Capital Markets America Inc.	3.119%	5/4/26	66,294		68,097
	BP Capital Markets America Inc.	3.017%	1/16/27	18,065		18,438
	BP Capital Markets plc	3.994%	9/26/23	22,000		23,366
	BP Capital Markets plc	3.814%	2/10/24	36,910		38,967
	BP Capital Markets plc	3.535%	11/4/24	40,500		42,618
	BP Capital Markets plc	3.506%	3/17/25	5,125		5,383
	BP Capital Markets plc	3.279%	9/19/27	9,568		9,887
	Cenovus Energy Inc.	4.250%	4/15/27	10,000		10,300
	Cheniere Corpus Christi Holdings LLC	5.125%	6/30/27	9,110		9,907
	Chevron Corp.	3.326%	11/17/25	18,125		19,119
	Chevron Corp.	2.954%	5/16/26	19,958		20,598
	Cimarex Energy Co.	3.900%	5/15/27	12,250		12,411
	Cimarex Energy Co.	4.375%	3/15/29	5,240		5,460
	Concho Resources Inc.	3.750%	10/1/27	38,904		39,974
	ConocoPhillips Co.	4.950%	3/15/26	67,877		77,262
	Continental Resources Inc.	4.375%	1/15/28	9,000		9,304
10	Diamondback Energy Inc.	4.750%	11/1/24	5,758		5,916
	Diamondback Energy Inc.	4.750%	11/1/24	5,185		5,328
	Dominion Energy Gas Holdings LLC	3.600%	12/15/24	25,000		26,114
	Energy Transfer Operating LP	4.900%	2/1/24	10,046		10,712
	Energy Transfer Operating LP	4.050%	3/15/25	14,738		15,212
	Energy Transfer Operating LP	4.200%	4/15/27	9,665		10,050
	Energy Transfer Operating LP	5.500%	6/1/27	18,070		20,224
	Energy Transfer Operating LP	5.250%	4/15/29	8,000		8,923
	Energy Transfer Partners LP	4.950%	6/15/28	11,750		12,824
	Energy Transfer Partners LP / Regency Energy Finance Corp.	4.500%	11/1/23	4,036		4,263
	Enterprise Products Operating LLC	3.700%	2/15/26	10,420		10,978
	Enterprise Products Operating LLC	3.125%	7/31/29	28,465		28,494
	EOG Resources Inc.	3.150%	4/1/25	16,997		17,403
	EOG Resources Inc.	4.150%	1/15/26	6,535		7,154
	EQT Corp.	3.900%	10/1/27	6,340		5,677
	Exxon Mobil Corp.	2.709%	3/6/25	7,598		7,760
	Husky Energy Inc.	4.400%	4/15/29	34,600		36,287
	Marathon Petroleum Corp.	5.125%	12/15/26	38,979		43,063
10	Midwest Connector Capital Co. LLC	3.900%	4/1/24	35,000		36,427

64

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	MPLX LP	4.875%	12/1/24	42,405		46,125
	MPLX LP	4.125%	3/1/27	5,000		5,221
	MPLX LP	4.800%	2/15/29	19,975		21,781
	Newfield Exploration Co.	5.625%	7/1/24	7,440		8,203
	Newfield Exploration Co.	5.375%	1/1/26	4,790		5,237
	Noble Energy Inc.	3.850%	1/15/28	10,000		10,190
10	Parsley Energy LLC / Parsley Finance Corp.	5.250%	8/15/25	1,815		1,829
10	Parsley Energy LLC / Parsley Finance Corp.	5.625%	10/15/27	2,710		2,791
	Sabine Pass Liquefaction LLC	5.750%	5/15/24	27,675		30,719
	Sabine Pass Liquefaction LLC	5.625%	3/1/25	19,710		21,898
	Sabine Pass Liquefaction LLC	5.875%	6/30/26	33,205		37,771
	Shell International Finance BV	2.250%	1/6/23	12,812		12,828
	Shell International Finance BV	3.400%	8/12/23	4,000		4,176
	Shell International Finance BV	3.250%	5/11/25	85,903		89,874
	Shell International Finance BV	2.875%	5/10/26	49,076		50,213
	Sunoco Logistics Partners Operations LP	4.250%	4/1/24	10,000		10,486
	Sunoco Logistics Partners Operations LP	3.900%	7/15/26	13,648		13,976
10	Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp.	4.750%	10/1/23	4,605		4,668
10	Targa Resources Partners LP / Targa Resources Partners Finance Corp.	6.500%	7/15/27	1,735		1,885
10	Targa Resources Partners LP / Targa Resources Partners Finance Corp.	6.875%	1/15/29	1,800		1,985
	Total Capital Canada Ltd.	2.750%	7/15/23	26,390		26,848
	Total Capital International SA	3.700%	1/15/24	21,525		22,745
	Total Capital International SA	2.434%	1/10/25	26,440		26,538
	Total Capital International SA	3.455%	2/19/29	25,000		26,675
13	Total Capital International SA	1.375%	10/4/29	5,200		6,436
	Total Capital International SA	2.829%	1/10/30	14,000		14,076
	Total Capital SA	3.883%	10/11/28	26,600		29,193
	TransCanada PipeLines Ltd.	3.750%	10/16/23	19,615		20,418
	TransCanada PipeLines Ltd.	4.875%	1/15/26	30,028		33,201
	TransCanada PipeLines Ltd.	4.250%	5/15/28	10,000		10,810
	Valero Energy Corp.	3.400%	9/15/26	7,677		7,839
	Valero Energy Corp.	4.000%	4/1/29	18,170		18,957
	Valero Energy Partners LP	4.500%	3/15/28	13,514		14,566
	Western Midstream Operating LP	4.500%	3/1/28	3,085		3,066
	Western Midstream Operating LP	4.750%	8/15/28	3,225		3,230
	Williams Cos. Inc.	4.550%	6/24/24	4,265		4,565
	Williams Cos. Inc.	3.900%	1/15/25	5,116		5,338
	Williams Cos. Inc.	3.750%	6/15/27	8,500		8,740
	Other Industrial (0.0%)
	CBRE Services Inc.	4.875%	3/1/26	10,000		10,938
	Technology (6.3%)
	Apple Inc.	3.000%	2/9/24	64,300		66,266
	Apple Inc.	3.450%	5/6/24	30,000		31,602
	Apple Inc.	2.850%	5/11/24	9,150		9,392
	Apple Inc.	2.750%	1/13/25	68,358		69,778
	Apple Inc.	2.500%	2/9/25	27,342		27,531
	Apple Inc.	3.250%	2/23/26	88,151		92,119
	Apple Inc.	2.450%	8/4/26	69,739		69,630
	Apple Inc.	3.350%	2/9/27	41,175		43,298
	Apple Inc.	3.200%	5/11/27	69,300		72,184
	Apple Inc.	2.900%	9/12/27	53,037		54,244
	Apple Inc.	3.000%	11/13/27	10,000		10,332
	Applied Materials Inc.	3.300%	4/1/27	14,606		15,216
	Broadcom Corp. / Broadcom Cayman Finance Ltd.	3.125%	1/15/25	19,450		18,836
	Broadcom Corp. / Broadcom Cayman Finance Ltd.	3.875%	1/15/27	33,100		32,234
10	Broadcom Inc.	4.250%	4/15/26	9,320		9,395
10	Broadcom Inc.	4.750%	4/15/29	7,000		7,136
10	CDK Global Inc.	5.250%	5/15/29	2,720		2,815
	Cisco Systems Inc.	2.500%	9/20/26	15,904		16,015

65

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
10	CommScope Finance LLC	8.250%	3/1/27	4,540		4,478
10	Dell International LLC / EMC Corp.	4.000%	7/15/24	30,000		30,922
10	Dell International LLC / EMC Corp.	6.020%	6/15/26	13,670		15,080
	Equinix Inc.	5.375%	5/15/27	2,725		2,926
	Fidelity National Information Services Inc.	3.750%	5/21/29	10,000		10,587
	Fiserv Inc.	3.200%	7/1/26	82,520		84,347
	Hewlett Packard Enterprise Co.	4.900%	10/15/25	24,990		27,424
	Intel Corp.	3.700%	7/29/25	31,950		34,057
	Intel Corp.	2.600%	5/19/26	5,000		5,050
	Intel Corp.	3.150%	5/11/27	10,000		10,463
	International Business Machines Corp.	3.625%	2/12/24	37,000		38,713
	International Business Machines Corp.	3.300%	5/15/26	103,665		107,593
	International Business Machines Corp.	3.500%	5/15/29	73,015		76,400
	Lam Research Corp.	3.750%	3/15/26	28,725		30,205
	Microsoft Corp.	2.700%	2/12/25	41,755		42,696
	Microsoft Corp.	3.125%	11/3/25	41,685		43,582
	Microsoft Corp.	2.400%	8/8/26	97,672		97,936
	Microsoft Corp.	3.300%	2/6/27	57,571		60,927
10	NXP BV / NXP Funding LLC	4.875%	3/1/24	22,000		23,540
10	NXP BV / NXP Funding LLC	5.350%	3/1/26	30,000		32,775
10	NXP BV / NXP Funding LLC / NXP USA Inc.	3.875%	6/18/26	15,000		15,412
	Oracle Corp.	3.400%	7/8/24	22,400		23,427
	Oracle Corp.	2.950%	11/15/24	44,875		46,062
	Oracle Corp.	2.950%	5/15/25	49,591		50,855
	Oracle Corp.	2.650%	7/15/26	55,985		56,051
	Oracle Corp.	3.250%	11/15/27	35,515		36,969
	QUALCOMM Inc.	2.900%	5/20/24	65,587		66,520
	QUALCOMM Inc.	3.250%	5/20/27	65,553		66,876
13	SAP SE	1.625%	3/10/31	8,000		10,018
10	SS&C Technologies Inc.	5.500%	9/30/27	4,915		5,112
	Tyco Electronics Group SA	3.500%	2/3/22	19,370		19,786
	Tyco Electronics Group SA	3.450%	8/1/24	8,710		8,997
	Tyco Electronics Group SA	3.700%	2/15/26	25,263		26,156
	Tyco Electronics Group SA	3.125%	8/15/27	28,779		28,768
§,4,10	Vantage Data Centers LLC 2019-1A	3.188%	7/15/44	2,300		2,300
	Verisk Analytics Inc.	4.000%	6/15/25	16,000		17,106
	Verisk Analytics Inc.	4.125%	3/15/29	13,740		14,857
	Western Digital Corp.	4.750%	2/15/26	2,765		2,737
	Transportation (0.9%)
11	Aurizon Network Pty Ltd.	4.000%	6/21/24	29,190		21,312
	Burlington Northern Santa Fe LLC	3.400%	9/1/24	15,000		15,746
	Burlington Northern Santa Fe LLC	7.000%	12/15/25	16,231		20,283
	Burlington Northern Santa Fe LLC	3.250%	6/15/27	9,850		10,326
4	Continental Airlines 2012-2 Class A Pass Through Trust	4.000%	4/29/26	4,897		5,103
	CSX Corp.	3.250%	6/1/27	10,000		10,306
	CSX Corp.	4.250%	3/15/29	27,945		31,062
4	Delta Air Lines 2002-1 Class G-1 Pass Through Trust	6.718%	7/2/24	7,163		7,621
4	Delta Air Lines 2015-1 Class A Pass Through Trust	3.875%	1/30/29	7,441		7,751
10	ERAC USA Finance LLC	3.850%	11/15/24	8,000		8,437
10	ERAC USA Finance LLC	3.800%	11/1/25	9,000		9,485
4,10	Heathrow Funding Ltd.	4.875%	7/15/23	330		342
	JB Hunt Transport Services Inc.	3.875%	3/1/26	45,000		47,604
	Norfolk Southern Corp.	3.800%	8/1/28	10,000		10,789
11	Pacific National Finance Pty Ltd.	5.400%	5/12/27	11,770		9,232
	Southwest Airlines Co.	7.375%	3/1/27	4,930		6,238
	Union Pacific Corp.	2.750%	3/1/26	9,017		9,026
	Union Pacific Corp.	3.700%	3/1/29	10,000		10,728
	Union Pacific Corp.	3.550%	8/15/39	4,500		4,530
4	United Airlines 2013-1 Class A Pass Through Trust	4.300%	2/15/27	4,405		4,688
	United Parcel Service Inc.	3.050%	11/15/27	20,925		21,663
11	WSO Finance Pty Ltd.	3.500%	7/14/23	10,260		7,444
						9,590,936

66

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
Utilities (4.0%)
	Electric (3.9%)
	AEP Transmission Co. LLC	3.100%	12/1/26	10,100		10,360
	Ameren Illinois Co.	3.250%	3/1/25	11,680		12,120
	Baltimore Gas & Electric Co.	3.350%	7/1/23	10,627		10,973
	Berkshire Hathaway Energy Co.	2.800%	1/15/23	7,955		8,065
	Berkshire Hathaway Energy Co.	3.750%	11/15/23	47,864		50,396
	Berkshire Hathaway Energy Co.	3.250%	4/15/28	16,025		16,606
	Commonwealth Edison Co.	3.100%	11/1/24	5,790		5,893
	Commonwealth Edison Co.	2.550%	6/15/26	2,955		2,942
	Commonwealth Edison Co.	3.700%	8/15/28	6,338		6,865
	Connecticut Light & Power Co.	2.500%	1/15/23	26,960		27,145
	Dominion Energy South Carolina Inc.	4.250%	8/15/28	33,480		37,366
	DTE Energy Co.	3.800%	3/15/27	19,680		20,666
	DTE Energy Co.	3.400%	6/15/29	17,760		17,956
	Duke Energy Carolinas LLC	2.950%	12/1/26	11,600		11,855
	Duke Energy Carolinas LLC	3.950%	11/15/28	13,339		14,611
	Duke Energy Corp.	3.400%	6/15/29	18,400		18,964
	Duke Energy Florida LLC	3.200%	1/15/27	8,403		8,717
	Duke Energy Florida LLC	3.800%	7/15/28	29,164		31,609
	Duke Energy Progress LLC	3.700%	9/1/28	5,781		6,230
	Edison International	5.750%	6/15/27	4,000		4,446
	Edison International	4.125%	3/15/28	2,000		2,054
	Entergy Arkansas Inc.	3.050%	6/1/23	7,410		7,530
	Entergy Arkansas Inc.	3.700%	6/1/24	9,708		10,247
	Entergy Arkansas Inc.	3.500%	4/1/26	24,414		25,590
	Entergy Gulf States Louisiana LLC	5.590%	10/1/24	12,935		14,806
	Entergy Louisiana LLC	4.050%	9/1/23	6,400		6,785
	Entergy Louisiana LLC	5.400%	11/1/24	8,562		9,797
	Entergy Louisiana LLC	2.400%	10/1/26	18,176		17,802
	Entergy Louisiana LLC	3.120%	9/1/27	18,025		18,534
	Entergy Louisiana LLC	4.950%	1/15/45	9,250		9,789
	Exelon Corp.	3.950%	6/15/25	23,652		25,087
	FirstEnergy Corp.	4.250%	3/15/23	23,472		24,716
10	FirstEnergy Transmission LLC	4.350%	1/15/25	35,685		38,291
	ITC Holdings Corp.	3.250%	6/30/26	9,700		9,827
	ITC Holdings Corp.	3.350%	11/15/27	18,745		19,365
10	Kallpa Generacion SA	4.125%	8/16/27	11,000		11,316
10	Mid-Atlantic Interstate Transmission LLC	4.100%	5/15/28	19,926		21,499
	MidAmerican Energy Co.	3.700%	9/15/23	5,500		5,748
	National Rural Utilities Cooperative Finance Corp.	3.700%	3/15/29	43,526		47,283
	NextEra Energy Capital Holdings Inc.	3.150%	4/1/24	37,108		38,077
10	NRG Energy Inc.	5.250%	6/15/29	3,645		3,836
	NSTAR Electric Co.	3.250%	11/15/25	10,000		10,291
	NSTAR Electric Co.	3.200%	5/15/27	50,840		52,476
	Oncor Electric Delivery Co. LLC	2.950%	4/1/25	1,200		1,228
10	Oncor Electric Delivery Co. LLC	3.700%	11/15/28	42,000		45,185
	Oncor Electric Delivery Co. LLC	5.750%	3/15/29	22,322		27,717
	PacifiCorp	3.600%	4/1/24	14,000		14,672
	PacifiCorp	3.350%	7/1/25	17,720		18,412
	PacifiCorp	3.500%	6/15/29	15,485		16,624
	Potomac Electric Power Co.	3.050%	4/1/22	2,270		2,307
	Potomac Electric Power Co.	3.600%	3/15/24	15,690		16,444
	Public Service Electric & Gas Co.	3.200%	5/15/29	31,500		32,907
	Public Service Enterprise Group Inc.	2.875%	6/15/24	45,000		45,536
	Puget Energy Inc.	3.650%	5/15/25	13,665		14,007
	Southern California Edison Co.	3.700%	8/1/25	13,871		14,445
	Southern California Edison Co.	4.200%	3/1/29	9,000		9,824
	Southwestern Electric Power Co.	4.100%	9/15/28	25,000		27,184
	Southwestern Public Service Co.	3.300%	6/15/24	41,070		42,544
10	Trans-Allegheny Interstate Line Co.	3.850%	6/1/25	11,000		11,622
	Union Electric Co.	2.950%	6/15/27	12,861		13,016

67

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
7,11	Victoria Power Networks Finance Pty Ltd., 3M Australian Bank Bill Rate + 0.280%	1.918%	8/15/21	2,000		1,351
7,11	Victoria Power Networks Finance Pty Ltd., 3M Australian Bank Bill Rate + 0.280%	1.405%	1/15/22	500		336
	Virginia Electric & Power Co.	3.450%	9/1/22	9,000		9,257
	Virginia Electric & Power Co.	2.750%	3/15/23	4,744		4,801
	Virginia Electric & Power Co.	3.450%	2/15/24	7,000		7,274
	Virginia Electric & Power Co.	3.100%	5/15/25	8,885		9,131
	Virginia Electric & Power Co.	3.150%	1/15/26	12,295		12,688
	Virginia Electric & Power Co.	2.950%	11/15/26	26,277		26,905
10	Vistra Operations Co. LLC	5.000%	7/31/27	4,533		4,635
	Westar Energy Inc.	2.550%	7/1/26	2,000		1,981
	Westar Energy Inc.	3.100%	4/1/27	5,800		5,960
	Natural Gas (0.1%)
13	Cadent Finance plc	0.625%	9/22/24	4,100		4,624
10	Engie SA	2.875%	10/10/22	3,480		3,529
	Piedmont Natural Gas Co. Inc.	3.500%	6/1/29	15,000		15,689
	Sempra Energy	3.400%	2/1/28	12,092		12,236
	Southern Co. Gas Capital Corp.	3.250%	6/15/26	4,125		4,194
	Other Utility (0.0%)
11	DBNGP Finance Co. Pty Ltd.	4.225%	5/28/25	16,550		12,495
						1,245,291
Total Corporate Bonds (Cost $19,166,432)						19,835,591
Sovereign Bonds (6.8%)
10	Abu Dhabi National Energy Co. PJSC	4.875%	4/23/30	9,450		10,587
	Argentine Republic	6.875%	4/22/21	24,400		21,929
	Argentine Republic	6.875%	1/26/27	26,907		22,232
10	Banco Latinoamericano de Comercio Exterior SA	3.250%	5/7/20	4,000		4,007
10	Banque Ouest Africaine de Developpement	5.000%	7/27/27	4,929		5,191
10	Bermuda	4.138%	1/3/23	10,964		11,464
10	Bermuda	4.854%	2/6/24	3,517		3,833
	Bermuda	4.854%	2/6/24	8,791		9,639
4	Bermuda	4.750%	2/15/29	12,860		14,446
10	BOC Aviation Ltd.	2.375%	9/15/21	15,000		14,816
	Cayman Islands	5.950%	11/24/19	500		508
10	CDP Financial Inc.	3.150%	7/24/24	8,000		8,325
	Centrais Eletricas Brasileiras SA	5.750%	10/27/21	3,300		3,456
4	Ciudad Autonoma De Buenos Aires	8.950%	2/19/21	164		166
	CNOOC Finance 2015 USA LLC	3.750%	5/2/23	8,231		8,507
	CNOOC Finance 2015 USA LLC	3.500%	5/5/25	2,105		2,176
	CNOOC Nexen Finance 2014 ULC	4.250%	4/30/24	10,190		10,852
10	CNPC General Capital Ltd.	3.400%	4/16/23	1,000		1,020
	Corp. Financiera de Desarrollo SA	4.750%	7/15/25	15,100		16,280
	Development Bank of Kazakhstan JSC	4.125%	12/10/22	8,605		8,823
10,14	Dexia Credit Local SA	1.875%	9/15/21	10,000		9,939
10	Dexia Credit Local SA	2.375%	9/20/22	1,750		1,761
	Dominican Republic	6.600%	1/28/24	3,250		3,617
10	Electricite de France SA	4.500%	9/21/28	9,500		10,450
	Emirate of Abu Dhabi	3.125%	10/11/27	19,388		20,121
	Equinor ASA	3.150%	1/23/22	3,000		3,065
	Equinor ASA	2.450%	1/17/23	3,000		3,017
	Equinor ASA	3.950%	5/15/43	3,191		3,469
	Export-Import Bank of India	3.375%	8/5/26	3,000		3,026
10	Export-Import Bank of India	3.875%	2/1/28	9,675		10,028
	Export-Import Bank of Korea	5.125%	6/29/20	17,000		17,407
	Export-Import Bank of Korea	4.000%	1/29/21	1,000		1,023
	Export-Import Bank of Korea	2.750%	1/25/22	2,500		2,520
	Export-Import Bank of Korea	3.000%	11/1/22	38,308		38,983
4	Federative Republic of Brazil	4.500%	5/30/29	17,200		17,909
	Fondo MIVIVIENDA SA	3.500%	1/31/23	14,000		14,258
	Gazprom OAO Via Gaz Capital SA	6.510%	3/7/22	2,650		2,876

68

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Gazprom OAO Via Gaz Capital SA	7.288%	8/16/37	7,000		8,986
	ICBCIL Finance Co. Ltd.	3.250%	3/17/20	4,800		4,812
	ICBCIL Finance Co. Ltd.	3.000%	4/5/20	3,538		3,541
	ICBCIL Finance Co. Ltd.	3.200%	11/10/20	5,000		5,018
	ICBCIL Finance Co. Ltd.	3.375%	4/5/22	10,000		10,077
	Industrial & Commercial Bank of China Ltd.	3.231%	11/13/19	2,400		2,404
10	KazMunayGas National Co. JSC	6.375%	10/24/48	5,400		6,527
10	Kingdom of Saudi Arabia	2.375%	10/26/21	785		785
	Kingdom of Saudi Arabia	2.375%	10/26/21	131,077		131,116
	Kingdom of Saudi Arabia	4.000%	4/17/25	13,500		14,450
10,13	Kingdom of Spain	2.700%	10/31/48	59,880		89,442
	Korea Development Bank	4.625%	11/16/21	3,285		3,449
	Korea Gas Corp.	2.250%	7/18/26	2,240		2,164
	Korea Hydro & Nuclear Power Co. Ltd.	3.000%	9/19/22	2,800		2,839
10	Korea National Oil Corp.	2.875%	3/27/22	6,800		6,859
	North American Development Bank	2.400%	10/26/22	1,300		1,299
	NTPC Ltd.	4.250%	2/26/26	6,250		6,557
	OCP SA	5.625%	4/25/24	1,520		1,657
10	Ontario Teachers’ Cadillac Fairview Properties Trust	3.125%	3/20/22	6,000		6,104
10	Ontario Teachers’ Cadillac Fairview Properties Trust	3.875%	3/20/27	7,000		7,445
10	Ontario Teachers’ Cadillac Fairview Properties Trust	4.125%	2/1/29	11,900		12,909
	Perusahaan Penerbit SBSN Indonesia III	4.325%	5/28/25	11,905		12,634
	Perusahaan Penerbit SBSN Indonesia III	4.550%	3/29/26	4,000		4,305
	Perusahaan Penerbit SBSN Indonesia III	4.150%	3/29/27	18,000		19,035
	Petrobras Global Finance BV	8.750%	5/23/26	5,250		6,536
	Petrobras Global Finance BV	7.375%	1/17/27	1,051		1,241
	Petrobras Global Finance BV	5.999%	1/27/28	2,850		3,106
	Petroleos Mexicanos	5.500%	1/21/21	150,939		154,358
	Petroleos Mexicanos	6.875%	8/4/26	35,515		36,100
	Petroleos Mexicanos	6.500%	3/13/27	5,835		5,790
7	Petroleos Mexicanos, 3M USD LIBOR + 3.650%	6.101%	3/11/22	14,150		14,273
	Province of Ontario	4.000%	10/7/19	4,500		4,514
4	Republic of Colombia	4.500%	1/28/26	49,678		53,528
	Republic of Colombia	10.375%	1/28/33	33,975		53,176
4	Republic of Colombia	5.000%	6/15/45	7,855		8,690
	Republic of Croatia	6.375%	3/24/21	7,250		7,675
13	Republic of Croatia	3.000%	3/20/27	12,582		16,356
13	Republic of Croatia	1.125%	6/19/29	22,630		25,582
4,10	Republic of Guatemala	6.125%	6/1/50	5,850		6,340
	Republic of Honduras	6.250%	1/19/27	3,270		3,542
	Republic of Hungary	6.375%	3/29/21	5,980		6,358
	Republic of Indonesia	4.875%	5/5/21	29,441		30,605
10	Republic of Indonesia	3.700%	1/8/22	3,124		3,206
	Republic of Indonesia	3.750%	4/25/22	88,508		90,965
	Republic of Indonesia	5.375%	10/17/23	6,400		7,072
	Republic of Indonesia	5.875%	1/15/24	34,830		39,247
	Republic of Indonesia	4.125%	1/15/25	33,555		35,599
10	Republic of Latvia	2.750%	1/12/20	1,000		1,000
	Republic of Latvia	2.750%	1/12/20	7,350		7,357
	Republic of Lithuania	7.375%	2/11/20	23,356		23,945
10	Republic of Lithuania	6.125%	3/9/21	7,400		7,832
	Republic of Lithuania	6.125%	3/9/21	42,564		45,070
	Republic of Lithuania	6.625%	2/1/22	12,000		13,248
13	Republic of Lithuania	1.625%	6/19/49	6,800		8,445
4	Republic of Panama	4.000%	9/22/24	6,700		7,119
4	Republic of Panama	3.160%	1/23/30	22,900		23,014
	Republic of Panama	8.125%	4/28/34	9,236		12,965
	Republic of Poland	5.125%	4/21/21	10,505		11,017
10,13	Republic of Romania	2.124%	7/16/31	4,400		4,926
10,13	Republic of Romania	4.625%	4/3/49	3,010		4,142
	Republic of Serbia	4.875%	2/25/20	3,381		3,418
	Republic of Serbia	7.250%	9/28/21	13,696		14,975
13	Republic of Serbia	1.500%	6/26/29	27,370		30,442
	Republic of Slovenia	5.500%	10/26/22	36,554		40,051

69

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Republic of South Africa	5.875%	9/16/25	17,437		18,918
15	Republic of South Africa	10.500%	12/21/26	710,000		55,389
	Republic of South Africa	4.850%	9/27/27	8,520		8,658
	Russian Federation	5.100%	3/28/35	17,200		18,710
	SABIC Capital II BV	4.000%	10/10/23	12,000		12,576
10	SABIC Capital II BV	4.000%	10/10/23	15,288		15,995
	Sinopec Capital 2013 Ltd.	3.125%	4/24/23	13,170		13,346
	Sinopec Group Overseas Development 2013 Ltd.	4.375%	10/17/23	34,570		36,822
10	Sinopec Group Overseas Development 2013 Ltd.	4.375%	10/17/23	1,800		1,914
	Sinopec Group Overseas Development 2014 Ltd.	4.375%	4/10/24	13,650		14,617
	Sinopec Group Overseas Development 2016 Ltd.	3.500%	5/3/26	5,000		5,179
	Sinopec Group Overseas Development 2017 Ltd.	2.500%	9/13/22	5,000		4,967
10	Sinopec Group Overseas Development 2017 Ltd.	3.625%	4/12/27	12,500		13,026
	Sinopec Group Overseas Development 2017 Ltd.	3.250%	9/13/27	11,300		11,495
	Socialist Republic of Vietnam	6.750%	1/29/20	16,900		17,208
	State Bank of India	4.375%	1/24/24	4,200		4,419
	State Grid Overseas Investment 2014 Ltd.	4.125%	5/7/24	4,005		4,261
	State Grid Overseas Investment 2016 Ltd.	3.750%	5/2/23	5,245		5,448
	State of Israel	3.150%	6/30/23	2,000		2,069
13	State of Israel	2.875%	1/29/24	1,100		1,374
	State of Kuwait	2.750%	3/20/22	14,606		14,762
	State of Qatar	2.375%	6/2/21	775		775
	State of Qatar	4.000%	3/14/29	91,126		99,343
	Sultanate of Oman	6.750%	1/17/48	4,800		4,532
10	Temasek Financial I Ltd.	2.375%	1/23/23	1,000		1,004
	United Mexican States	3.600%	1/30/25	13,095		13,425
	United Mexican States	4.125%	1/21/26	10,240		10,724
16	United Mexican States	5.750%	3/5/26	1,890,540		90,312
13	United Mexican States	1.625%	4/8/26	13,715		15,681
	United Mexican States	4.500%	4/22/29	15,242		16,206
Total Sovereign Bonds (Cost $2,054,303)						2,112,120
Taxable Municipal Bonds (0.1%)
	Allentown PA Neighborhood Improvement Zone Development Authority Revenue	5.420%	5/1/21	4,000		4,028
	Florida Hurricane Catastrophe Fund Finance Corp. Revenue	2.995%	7/1/20	1,250		1,258
	Georgia Municipal Electric Power Authority Revenue	6.655%	4/1/57	5,852		7,944
	Illinois GO	5.000%	1/1/23	1,835		1,908
	JobsOhio Beverage System Statewide Liquor Profits Revenue	2.885%	1/1/21	1,000		1,011
17	New Jersey Economic Development Authority Revenue (State Pension Funding)	7.425%	2/15/29	5,435		6,885
	New York City NY Transitional Finance Authority Future Tax Revenue	5.125%	2/1/24	1,500		1,684
	New York State Dormitory Authority Revenue (Employer Assessment)	3.892%	12/1/24	2,000		2,172
	Port Authority of New York & New Jersey Revenue	5.859%	12/1/24	2,000		2,363
	San Diego County CA Regional Airport Authority Revenue	3.730%	7/1/21	800		821
	San Diego County CA Regional Airport Authority Revenue	5.594%	7/1/43	6,200		6,947
	Sonoma County CA Pension Obligation Revenue	6.000%	12/1/29	4,960		5,970
	Texas GO	3.682%	8/1/24	2,000		2,094
	University of California Revenue	2.300%	5/15/21	1,000		1,005
Total Taxable Municipal Bonds (Cost $43,025)						46,090

70

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

							Market
							Value
					Shares		($000	)
Convertible Preferred Stocks (0.0%)
§,*	Lehman Brothers Holdings Inc. Pfd. (Cost $8,571)				8,740		—
Temporary Cash Investments (3.2%)
		Coupon
Money Market Fund (1.9%)
18	Vanguard Market Liquidity Fund	2.386%			5,848,449		584,903
					Face
				Maturity	Amount
				Date	($000	)
Commercial Paper (1.3%)
19	Anheuser-Busch Inbev Worldwide Inc.	2.720%		9/5/19	44,800		44,688
19	AT&T Inc.	2.755%		9/27/19	50,000		49,773
	Bell Canada Inc.	2.699%		9/6/19	30,000		29,920
19	Dominion Energy Inc.	2.770%		9/5/19	75,000		74,803
19	DuPont de Nemours Inc.	2.728%		8/23/19	50,000		49,918
19	EI du Pont de Nemours & Co	2.748%		8/23/19	50,000		49,918
19	Entergy Corp.	2.749%		8/29/19	12,750		12,723
19	Entergy Corp.	2.678%		9/10/19	37,500		37,388
19	Rogers Communication Inc.	2.728%		8/27/19	50,000		49,896
							399,027
Total Temporary Cash Investments (Cost $983,936)							983,930
		Counterparty	Expiration Date	Exercise Rate	Notional Amount on Underlying Swap ($000)
Options Purchased (0.0%)
Over-the-Counter Swaptions (0.0%)
Call Swaptions (0.0%)
	10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.941% Semiannually	BNPSW	10/2/19	1.941%	31,440		267
	10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.916% Semiannually	GSCM	10/3/19	1.916%	78,600		594
	10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 2.035% Semiannually	JPMC	10/17/19	2.035%	31,440		449
	5-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.857% Semiannually	DBAG	6/21/21	1.857%	62,890		1,081
							2,391
Put Swaptions (0.0%)
	1-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 2.260% Semiannually	CITNA	8/23/19	2.260%	313,000		26
	10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.941% Semiannually	BNPSW	10/2/19	1.941%	31,440		286
	10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.916% Semiannually	GSCM	10/3/19	1.916%	78,600		819
	10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 2.035% Semiannually	JPMC	10/17/19	2.035%	31,440		197
	5-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.857% Semiannually	DBAG	6/21/21	1.857%	62,890		969
	5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	BARC	8/21/19	0.600%	63,950		33
	5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	JPMC	9/18/19	0.700%	127,890		63
							2,393

71

Vanguard® Intermediate-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

Total Swaption Contracts Purchased (Cost $6,089)	4,784
Total Investments (99.2%) (Cost $29,736,760)	30,612,032
Other Assets and Liabilities—Net (0.8%)	241,368
Net Assets (100%)	30,853,400

§	Security value determined using significant unobservable inputs.
*	Non-income-producing—security in default.
1	Securities with a value of $14,646,000 have been segregated as initial margin for open centrally cleared swap contracts.
2	Securities with a value of $1,042,000 have been segregated as collateral for open forward currency contracts and over-the-counter swap contracts.
3	Securities with a value of $42,732,000 have been segregated as initial margin for open futures contracts.
4	The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.
5	Includes securities purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of July 31, 2019.
6	The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.
7	Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.
8	Inverse interest-only security.
9	Interest-only security.
10	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 July 31, 2019, the aggregate value of these securities was $4,435,294,000, representing 14.4% of net assets.
11	Face amount denominated in Australian dollars.
12	Face amount denominated in British pounds.
13	Face amount denominated in euro.
14	Guaranteed by multiple countries.
15	Face amount denominated in South African rand.
16	Face amount denominated in Mexican pesos.
17	Scheduled principal and interest payments are guaranteed by National Public Finance Guarantee Corp.
18	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
19	Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration only to dealers in that program or other “accredited investors.”  At July 31, 2019, the aggregate value of these securities was $369,107,000, representing 1.2% of net assets.
	BARC—Barclays Bank plc.
	BNPSW—BNP Paribas.
	CC—Centrally Cleared.
	CITNA—Citibank N.A.
	CMT—Constant Maturing Treasury Rate.
	DBAG—Deutsche Bank AG.
	GO—General Obligation Bond.
	GSCM—Goldman Sachs Bank USA.
	JPMC—JP Morgan Chase Bank.
	LIBOR—London Interbank Offered Rate.
	OTC—Over-the-Counter.
	REMICS—Real Estate Mortgage Investment Conduits.
	TBA—To Be Announced.

72

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
U.S. Government and Agency Obligations (8.6%)
U.S. Government Securities (6.3%)
	United States Treasury Note/Bond	2.250%	11/15/24	10,808		11,027
1	United States Treasury Note/Bond	4.500%	2/15/36	182,000		239,898
2	United States Treasury Note/Bond	4.750%	2/15/37	109,059		149,190
	United States Treasury Note/Bond	4.375%	11/15/39	2,100		2,790
3	United States Treasury Note/Bond	4.375%	5/15/40	126,785		168,663
	United States Treasury Note/Bond	2.875%	5/15/43	4,100		4,382
2,3	United States Treasury Note/Bond	3.375%	5/15/44	25,000		29,023
	United States Treasury Note/Bond	3.000%	11/15/44	9,210		10,049
	United States Treasury Note/Bond	2.500%	2/15/45	28,662		28,537
	United States Treasury Note/Bond	2.875%	8/15/45	118,700		126,749
	United States Treasury Note/Bond	3.000%	11/15/45	189,052		206,687
	United States Treasury Note/Bond	2.250%	8/15/46	9,500		8,967
	United States Treasury Note/Bond	3.000%	5/15/47	31,000		33,926
	United States Treasury Note/Bond	2.750%	11/15/47	47,602		49,633
3	United States Treasury Note/Bond	3.000%	2/15/48	59,320		64,909
	United States Treasury Note/Bond	3.125%	5/15/48	30,000		33,619
3	United States Treasury Note/Bond	3.000%	8/15/48	3,000		3,287
	United States Treasury Strip Principal	0.000%	2/15/48	47,795		22,747
						1,194,083
Agency Bonds and Notes (0.3%)
	Tennessee Valley Authority	5.250%	9/15/39	33,800		44,722
	Tennessee Valley Authority	4.250%	9/15/65	10,000		12,514
						57,236
Conventional Mortgage-Backed Securities (1.6%)
4,5	Fannie Mae Pool	2.980%	9/1/34	1,380		1,406
4,5	Fannie Mae Pool	3.050%	10/1/32	1,716		1,777
4,5	Fannie Mae Pool	3.230%	7/1/32	3,527		3,709
4,5	Fannie Mae Pool	3.250%	6/1/32	6,115		6,402
4,5	Fannie Mae Pool	3.260%	9/1/32	26,625		28,086
4,5	Fannie Mae Pool	3.300%	7/1/32	1,589		1,684
4,5	Fannie Mae Pool	3.360%	6/1/34	13,215		14,094
4,5	Fannie Mae Pool	3.440%	3/1/33	10,900		11,691
4,5	Fannie Mae Pool	3.490%	2/1/32	5,695		6,061
4,5	Fannie Mae Pool	3.560%	4/1/33	13,538		14,463
4,5	Fannie Mae Pool	3.580%	8/1/30–4/1/33	17,561		19,094
4,5	Fannie Mae Pool	3.590%	5/1/34	29,275		32,183
4,5	Fannie Mae Pool	3.610%	5/1/33	13,748		14,785
4,5	Fannie Mae Pool	3.620%	8/1/30–4/1/34	17,586		19,063
4,5	Fannie Mae Pool	3.670%	3/1/31	5,960		6,518
4,5	Fannie Mae Pool	3.690%	8/1/30	8,625		9,461
4,5	Fannie Mae Pool	3.765%	3/1/34	33,570		37,345
4,5	Fannie Mae Pool	3.970%	1/1/34	41,879		47,199
4,5	Fannie Mae Pool	4.030%	12/1/33–1/1/34	9,198		10,389
4,5	Fannie Mae Pool	4.130%	12/1/30	6,430		7,299
4,5	Fannie Mae Pool	4.180%	12/1/30	7,780		8,869
4,5	Freddie Mac Pool	3.390%	7/1/34	12,909		13,573
4,6	UMBS TBA	4.000%	7/1/49–8/1/49	955		989
						316,140
Nonconventional Mortgage-Backed Securities (0.4%)
4,5	Fannie Mae REMICS	3.000%	7/25/47	12,564		12,957
4,5	Fannie Mae REMICS	3.500%	4/25/59	14,190		15,208
4,5,7,8	Fannie Mae REMICS, 6.200% - 1M USD LIBOR	3.934%	10/25/47	1,581		279
4,5	Freddie Mac REMICS	3.000%	4/15/47	11,716		11,822
4,5,7,8	Freddie Mac REMICS, 6.150% - 1M USD LIBOR	3.825%	1/15/42–1/15/45	1,147		184
4,5,7,8	Freddie Mac REMICS, 6.200% - 1M USD LIBOR	3.875%	12/15/47	593		109
4	Ginnie Mae REMICS	3.000%	7/20/47–8/20/47	29,167		29,872
9	Ginnie Mae REMICS	4.500%	1/20/48	18		3
4,7,8	Ginnie Mae REMICS, 5.650% - 1M USD LIBOR	3.378%	8/20/45	995		162

73

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4,7,8	Ginnie Mae REMICS, 6.100% - 1M USD LIBOR	3.828%	9/20/46	749		155
4,7,8	Ginnie Mae REMICS, 6.200% - 1M USD LIBOR	3.928%	10/20/47–12/20/47	1,874		320
						71,071
Total U.S. Government and Agency Obligations (Cost $1,531,910)						1,638,530
Asset-Backed/Commercial Mortgage-Backed Securities (0.7%)
4,5	FHLMC Multifamily Structured Pass Through Certificates K1511	3.542%	3/25/34	25,575		27,837
4,5	FHLMC Multifamily Structured Pass Through Certificates K155	3.750%	11/25/32	21,750		23,901
4,5	FHLMC Multifamily Structured Pass Through Certificates K157	3.990%	5/25/33	33,820		38,083
4,5	Freddie Mac Multifamily Structured Pass Through Certificates	3.900%	12/25/30	35,030		39,100
Total Asset-Backed/Commercial Mortgage-Backed Securities (Cost $122,445)						128,921
Corporate Bonds (74.9%)
Finance (17.9%)
	Banking (12.1%)
4	Bank of America Corp.	3.705%	4/24/28	25,080		26,224
4	Bank of America Corp.	3.974%	2/7/30	16,735		17,909
4	Bank of America Corp.	4.244%	4/24/38	80,790		89,436
4	Bank of America Corp.	4.078%	4/23/40	31,075		33,369
	Bank of America Corp.	5.875%	2/7/42	19,230		25,848
4	Bank of America Corp.	4.443%	1/20/48	26,455		30,160
4	Bank of America Corp.	3.946%	1/23/49	65,835		70,353
4	Bank of America Corp.	4.330%	3/15/50	36,555		41,453
	Bank of America NA	6.000%	10/15/36	20,450		27,141
	Bank One Corp.	8.000%	4/29/27	21,400		28,404
4	Citigroup Inc.	3.878%	1/24/39	64,990		68,619
	Citigroup Inc.	4.650%	7/30/45	13,983		16,292
4	Citigroup Inc.	4.281%	4/24/48	13,570		15,142
	Citigroup Inc.	4.650%	7/23/48	54,226		63,607
4	Goldman Sachs Group Inc.	3.691%	6/5/28	15,715		16,274
4	Goldman Sachs Group Inc.	3.814%	4/23/29	23,695		24,764
4	Goldman Sachs Group Inc.	4.223%	5/1/29	26,545		28,522
4	Goldman Sachs Group Inc.	4.017%	10/31/38	139,635		145,508
4	Goldman Sachs Group Inc.	4.411%	4/23/39	33,860		36,944
	Goldman Sachs Group Inc.	6.250%	2/1/41	13,370		17,945
	Goldman Sachs Group Inc.	4.800%	7/8/44	15,000		17,401
	Goldman Sachs Group Inc.	4.750%	10/21/45	15,539		18,198
	HSBC Bank USA NA	5.875%	11/1/34	45,205		57,493
	HSBC Bank USA NA	5.625%	8/15/35	22,425		27,023
	HSBC Holdings plc	4.375%	11/23/26	1,505		1,597
4	HSBC Holdings plc	4.041%	3/13/28	6,840		7,113
4	HSBC Holdings plc	3.973%	5/22/30	13,280		13,867
4,10	HSBC Holdings plc	3.000%	5/29/30	1,000		1,270
	HSBC Holdings plc	7.625%	5/17/32	21,200		29,385
	HSBC Holdings plc	6.500%	9/15/37	32,420		42,433
	HSBC Holdings plc	6.800%	6/1/38	48,749		66,143
	HSBC Holdings plc	6.100%	1/14/42	9,720		13,377
4,11	JPMorgan Chase & Co.	1.090%	3/11/27	2,500		2,902
4	JPMorgan Chase & Co.	4.203%	7/23/29	23,255		25,375
4	JPMorgan Chase & Co.	3.702%	5/6/30	35,300		37,316
	JPMorgan Chase & Co.	6.400%	5/15/38	54,099		75,345
4	JPMorgan Chase & Co.	3.882%	7/24/38	72,532		76,446
	JPMorgan Chase & Co.	5.500%	10/15/40	25,390		32,639
	JPMorgan Chase & Co.	5.600%	7/15/41	11,247		14,760
4	JPMorgan Chase & Co.	4.260%	2/22/48	37,060		40,722
4	JPMorgan Chase & Co.	4.032%	7/24/48	39,500		41,803
4	JPMorgan Chase & Co.	3.964%	11/15/48	103,215		110,679
4	JPMorgan Chase & Co.	3.897%	1/23/49	43,670		46,398

74

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Mitsubishi UFJ Financial Group Inc.	3.751%	7/18/39	5,000		5,148
4	Morgan Stanley	3.772%	1/24/29	24,285		25,475
4	Morgan Stanley	4.431%	1/23/30	11,285		12,447
	Morgan Stanley	7.250%	4/1/32	19,670		27,840
4	Morgan Stanley	3.971%	7/22/38	94,095		98,866
	Morgan Stanley	6.375%	7/24/42	33,160		46,884
	Morgan Stanley	4.300%	1/27/45	30,230		33,478
	Morgan Stanley	4.375%	1/22/47	35,500		39,808
	Wachovia Corp.	5.500%	8/1/35	2,400		2,906
	Wells Fargo & Co.	4.150%	1/24/29	2,350		2,559
	Wells Fargo & Co.	5.375%	11/2/43	55,167		67,750
	Wells Fargo & Co.	5.606%	1/15/44	139,708		176,427
	Wells Fargo & Co.	4.650%	11/4/44	15,327		17,368
	Wells Fargo & Co.	3.900%	5/1/45	4,000		4,329
	Wells Fargo & Co.	4.900%	11/17/45	19,485		22,682
	Wells Fargo & Co.	4.400%	6/14/46	31,865		34,807
	Wells Fargo & Co.	4.750%	12/7/46	42,559		48,679
	Wells Fargo Bank NA	6.600%	1/15/38	500		695
	Westpac Banking Corp.	4.421%	7/24/39	5,800		6,042
	Brokerage (0.2%)
12	FMR LLC	6.450%	11/15/39	16,010		21,470
	Intercontinental Exchange Inc.	4.250%	9/21/48	5,800		6,653
	Invesco Finance plc	5.375%	11/30/43	500		575
	Insurance (5.5%)
	ACE Capital Trust II	9.700%	4/1/30	4,855		6,979
	Aflac Inc.	4.000%	10/15/46	4,000		4,226
	Aflac Inc.	4.750%	1/15/49	2,500		2,957
	Allstate Corp.	4.500%	6/15/43	1,000		1,163
	Allstate Corp.	4.200%	12/15/46	14,385		16,095
	Allstate Corp.	3.850%	8/10/49	19,460		20,587
10	Berkshire Hathaway Finance Corp.	2.375%	6/19/39	1,300		1,659
	Berkshire Hathaway Finance Corp.	5.750%	1/15/40	1,935		2,586
	Berkshire Hathaway Finance Corp.	4.200%	8/15/48	32,195		36,178
	Berkshire Hathaway Finance Corp.	4.250%	1/15/49	68,185		76,926
11	Berkshire Hathaway Inc.	1.125%	3/16/27	1,400		1,656
	Berkshire Hathaway Inc.	4.500%	2/11/43	52,057		60,604
12	Jackson National Life Insurance Co.	8.150%	3/15/27	200		262
	Lincoln National Corp.	4.350%	3/1/48	4,500		4,749
	Marsh & McLennan Cos. Inc.	4.750%	3/15/39	16,495		19,226
	Marsh & McLennan Cos. Inc.	4.350%	1/30/47	17,695		19,383
	Marsh & McLennan Cos. Inc.	4.900%	3/15/49	25,501		30,659
12	Massachusetts Mutual Life Insurance Co.	8.875%	6/1/39	3,449		5,697
12	Massachusetts Mutual Life Insurance Co.	5.375%	12/1/41	5,000		6,099
12	Massachusetts Mutual Life Insurance Co.	4.500%	4/15/65	310		337
	MetLife Inc.	4.125%	8/13/42	49,795		53,947
	MetLife Inc.	4.875%	11/13/43	10,000		11,934
	MetLife Inc.	4.050%	3/1/45	3,365		3,608
	MetLife Inc.	4.600%	5/13/46	9,700		11,263
12	Metropolitan Life Insurance Co.	7.800%	11/1/25	23,750		30,102
12	Nationwide Mutual Insurance Co.	9.375%	8/15/39	25,706		41,966
12	Nationwide Mutual Insurance Co.	4.950%	4/22/44	13,215		14,554
12	New York Life Insurance Co.	5.875%	5/15/33	42,185		54,804
12	New York Life Insurance Co.	4.450%	5/15/69	3,880		4,315
12	Northwestern Mutual Life Insurance Co.	6.063%	3/30/40	19,090		25,752
12	Northwestern Mutual Life Insurance Co.	3.850%	9/30/47	8,944		9,398
4,12	Pacific Life Insurance Co.	4.300%	10/24/67	7,830		7,688
	Progressive Corp.	4.125%	4/15/47	4,615		5,147
	Progressive Corp.	4.200%	3/15/48	2,975		3,362
	Prudential Financial Inc.	5.700%	12/14/36	2,031		2,620
	Prudential Financial Inc.	4.600%	5/15/44	5,000		5,753
4	Prudential Financial Inc.	5.375%	5/15/45	135		144
	Prudential Financial Inc.	3.935%	12/7/49	10,205		10,817
	Prudential Financial Inc.	4.350%	2/25/50	1,686		1,897

75

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
12	Securian Financial Group Inc.	4.800%	4/15/48	5,974		6,716
12	Swiss Re Treasury US Corp.	4.250%	12/6/42	11,170		12,156
	Travelers Cos. Inc.	4.100%	3/4/49	27,540		31,138
	UnitedHealth Group Inc.	4.625%	7/15/35	16,630		19,452
	UnitedHealth Group Inc.	5.800%	3/15/36	45,136		57,848
	UnitedHealth Group Inc.	6.875%	2/15/38	16,165		23,374
	UnitedHealth Group Inc.	3.500%	8/15/39	24,225		24,250
	UnitedHealth Group Inc.	4.375%	3/15/42	25,000		27,679
	UnitedHealth Group Inc.	3.950%	10/15/42	1,100		1,154
	UnitedHealth Group Inc.	4.750%	7/15/45	54,040		63,173
	UnitedHealth Group Inc.	4.250%	4/15/47	17,247		18,753
	UnitedHealth Group Inc.	3.750%	10/15/47	34,705		35,594
	UnitedHealth Group Inc.	4.250%	6/15/48	26,467		28,921
	UnitedHealth Group Inc.	4.450%	12/15/48	3,000		3,368
	UnitedHealth Group Inc.	3.700%	8/15/49	40,620		40,745
	UnitedHealth Group Inc.	3.875%	8/15/59	30,185		30,198
	Real Estate Investment Trusts (0.1%)
	Alexandria Real Estate Equities Inc.	4.000%	2/1/50	2,000		2,034
	AvalonBay Communities Inc.	4.150%	7/1/47	4,000		4,443
	ERP Operating LP	4.500%	7/1/44	2,465		2,836
	Federal Realty Investment Trust	4.500%	12/1/44	2,800		3,165
	Simon Property Group LP	4.250%	10/1/44	755		829
	Simon Property Group LP	4.250%	11/30/46	2,000		2,239
						3,383,651
Industrial (41.9%)
	Basic Industry (0.8%)
	BHP Billiton Finance USA Ltd.	4.125%	2/24/42	16,000		17,783
	BHP Billiton Finance USA Ltd.	5.000%	9/30/43	31,500		39,322
	Celulosa Arauco y Constitucion SA	5.500%	11/2/47	375		412
	Nutrien Ltd.	5.000%	4/1/49	6,337		7,016
	Praxair Inc.	3.550%	11/7/42	1,900		1,965
	Rio Tinto Finance USA Ltd.	5.200%	11/2/40	11,000		13,686
	Rio Tinto Finance USA plc	4.125%	8/21/42	56,381		62,567
	Sherwin-Williams Co.	4.500%	6/1/47	3,788		4,042
12	Suzano Austria GmbH	7.000%	3/16/47	1,667		1,935
11	Vale SA	3.750%	1/10/23	2,380		2,845
	Capital Goods (2.5%)
11	Airbus Finance BV	1.375%	5/13/31	1,600		1,934
	Ball Corp.	4.875%	3/15/26	100		106
12	Berry Global Escrow Corp.	4.875%	7/15/26	150		156
	Boeing Co.	6.125%	2/15/33	13,565		17,743
	Boeing Co.	3.550%	3/1/38	19,925		20,185
	Boeing Co.	3.500%	3/1/39	7,849		7,830
	Boeing Co.	6.875%	3/15/39	12,499		18,108
	Boeing Co.	5.875%	2/15/40	3,940		5,131
	Boeing Co.	7.875%	4/15/43	5,900		9,245
	Boeing Co.	3.375%	6/15/46	5,000		4,776
	Boeing Co.	3.625%	3/1/48	10,275		10,292
	Boeing Co.	3.750%	2/1/50	28,150		28,309
	Boeing Co.	3.825%	3/1/59	4,434		4,361
	Boeing Co.	3.950%	8/1/59	27,225		27,107
	Caterpillar Inc.	6.050%	8/15/36	8,082		10,645
	Caterpillar Inc.	3.803%	8/15/42	26,112		27,957
	Caterpillar Inc.	4.750%	5/15/64	15,639		18,609
12	CFX Escrow Corp.	6.375%	2/15/26	150		160
12	Clean Harbors Inc.	4.875%	7/15/27	160		165
12	Clean Harbors Inc.	5.125%	7/15/29	155		163
	Deere & Co.	7.125%	3/3/31	13,500		18,979
	Eaton Corp.	4.150%	11/2/42	4,279		4,519
	Emerson Electric Co.	5.250%	11/15/39	1,000		1,234
	Honeywell International Inc.	5.700%	3/15/36	10,300		13,267
	Honeywell International Inc.	5.700%	3/15/37	6,250		8,218
11	Illinois Tool Works Inc.	3.000%	5/19/34	1,100		1,600

76

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Lockheed Martin Corp.	4.070%	12/15/42	5,000		5,510
	Lockheed Martin Corp.	3.800%	3/1/45	9,000		9,573
	Lockheed Martin Corp.	4.700%	5/15/46	4,040		4,910
	Lockheed Martin Corp.	4.090%	9/15/52	14,367		15,794
12	Masonite International Corp.	5.375%	2/1/28	105		108
12	Mueller Water Products Inc.	5.500%	6/15/26	1,105		1,156
	Northrop Grumman Corp.	4.030%	10/15/47	22,830		24,200
	Owens Corning	3.950%	8/15/29	2,095		2,092
	Precision Castparts Corp.	4.375%	6/15/45	3,000		3,405
	Raytheon Co.	4.700%	12/15/41	37,524		44,657
12	Resideo Funding Inc.	6.125%	11/1/26	280		295
11	Siemens Financieringsmaatschappij NV	1.250%	2/28/31	1,000		1,216
	Stanley Black & Decker Inc.	4.850%	11/15/48	33,540		39,889
	TransDigm Inc.	6.500%	7/15/24	150		154
12	TransDigm Inc.	6.250%	3/15/26	585		616
12	Trivium Packaging Finance BV	5.500%	8/15/26	110		113
12	Trivium Packaging Finance BV	8.500%	8/15/27	55		58
	United Rentals North America Inc.	4.625%	10/15/25	210		213
	United Rentals North America Inc.	6.500%	12/15/26	400		432
	United Technologies Corp.	6.125%	7/15/38	8,495		11,235
	United Technologies Corp.	3.750%	11/1/46	22,160		22,948
	United Technologies Corp.	4.625%	11/16/48	5,345		6,300
	Waste Management Inc.	4.000%	7/15/39	4,630		5,055
	Waste Management Inc.	4.150%	7/15/49	6,755		7,437
	Communication (5.6%)
	America Movil SAB de CV	3.625%	4/22/29	28,490		29,858
	America Movil SAB de CV	4.375%	4/22/49	51,765		57,058
	AT&T Inc.	4.550%	3/9/49	6,022		6,218
12	CCO Holdings LLC / CCO Holdings Capital Corp.	5.375%	6/1/29	105		109
	Comcast Corp.	4.250%	10/15/30	10,000		11,192
	Comcast Corp.	5.650%	6/15/35	35,824		45,365
	Comcast Corp.	6.500%	11/15/35	18,600		25,302
	Comcast Corp.	3.200%	7/15/36	16,810		16,612
	Comcast Corp.	3.900%	3/1/38	39,335		41,998
	Comcast Corp.	6.400%	5/15/38	3,545		4,839
	Comcast Corp.	4.600%	10/15/38	54,635		62,833
	Comcast Corp.	4.500%	1/15/43	1,250		1,394
	Comcast Corp.	4.750%	3/1/44	60,670		70,704
	Comcast Corp.	4.600%	8/15/45	17,375		19,816
	Comcast Corp.	3.400%	7/15/46	20,295		19,406
	Comcast Corp.	4.000%	8/15/47	18,875		20,016
	Comcast Corp.	3.969%	11/1/47	83,688		87,204
	Comcast Corp.	4.000%	3/1/48	30,340		31,911
	Comcast Corp.	4.700%	10/15/48	37,900		44,423
	Comcast Corp.	3.999%	11/1/49	31,176		32,904
	Comcast Corp.	4.049%	11/1/52	23,973		25,380
	Comcast Corp.	4.950%	10/15/58	109,865		132,506
12	Cox Communications Inc.	8.375%	3/1/39	13,850		19,547
	Crown Castle International Corp.	4.750%	5/15/47	3,000		3,352
12	CSC Holdings LLC	5.375%	2/1/28	195		203
12	CSC Holdings LLC	6.500%	2/1/29	195		215
12	Fox Corp.	5.576%	1/25/49	4,020		4,900
	Grupo Televisa SAB	5.250%	5/24/49	2,740		2,835
	NBCUniversal Media LLC	5.950%	4/1/41	17,035		22,400
	NBCUniversal Media LLC	4.450%	1/15/43	22,650		24,874
	Netflix Inc.	4.375%	11/15/26	330		333
12	Nexstar Escrow Inc.	5.625%	7/15/27	55		57
10	Orange SA	5.625%	1/23/34	1,350		2,326
12	SES Global Americas Holdings GP	5.300%	3/25/44	1,260		1,216
12	Sirius XM Radio Inc.	4.625%	7/15/24	245		251
	Sprint Corp.	7.125%	6/15/24	100		109
	Sprint Corp.	7.625%	2/15/25	100		111
	T-Mobile USA Inc.	4.750%	2/1/28	300		308

77

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
11	Telia Co. AB	1.625%	2/23/35	1,500		1,759
	Thomson Reuters Corp.	5.850%	4/15/40	350		406
	Time Warner Cable LLC	6.550%	5/1/37	11,975		13,934
10	Verizon Communications Inc.	2.500%	4/8/31	1,500		1,917
	Verizon Communications Inc.	4.500%	8/10/33	10,000		11,305
	Verizon Communications Inc.	5.250%	3/16/37	2,845		3,411
	Verizon Communications Inc.	4.812%	3/15/39	13,955		15,952
	Verizon Communications Inc.	4.862%	8/21/46	17,280		20,130
	Verizon Communications Inc.	4.672%	3/15/55	43,470		49,054
	Viacom Inc.	4.375%	3/15/43	4,815		4,757
	Viacom Inc.	5.850%	9/1/43	3,750		4,460
	Viacom Inc.	5.250%	4/1/44	5,000		5,474
12	Walt Disney Co.	6.200%	12/15/34	3,460		4,710
12	Walt Disney Co.	6.400%	12/15/35	3,000		4,160
12	Walt Disney Co.	6.150%	3/1/37	3,000		4,085
12	Walt Disney Co.	6.650%	11/15/37	2,650		3,806
12	Walt Disney Co.	6.150%	2/15/41	4,000		5,595
12	Walt Disney Co.	4.750%	9/15/44	6,850		8,324
	Walt Disney Co.	3.000%	7/30/46	4,000		3,808
	Walt Disney Co.	7.550%	7/15/93	15,750		18,774
12	Walt Disney Co.	7.900%	12/1/95	2,975		6,050
	Consumer Cyclical (6.5%)
12	1011778 BC ULC / New Red Finance Inc.	5.000%	10/15/25	600		613
	Alibaba Group Holding Ltd.	4.000%	12/6/37	31,000		32,386
	Alibaba Group Holding Ltd.	4.200%	12/6/47	41,000		43,735
	Alibaba Group Holding Ltd.	4.400%	12/6/57	28,010		30,633
12	Allison Transmission Inc.	4.750%	10/1/27	785		787
12	Allison Transmission Inc.	5.875%	6/1/29	150		159
	Amazon.com Inc.	4.800%	12/5/34	19,664		24,121
	Amazon.com Inc.	3.875%	8/22/37	50,815		55,948
	Amazon.com Inc.	4.950%	12/5/44	6,000		7,599
	Amazon.com Inc.	4.050%	8/22/47	105,380		118,934
	Amazon.com Inc.	4.250%	8/22/57	45,390		53,344
	American Axle & Manufacturing Inc.	6.500%	4/1/27	100		100
12	Churchill Downs Inc.	5.500%	4/1/27	600		629
12	Eagle Intermediate Global Holding BV/Ruyi US Finance LLC	7.500%	5/1/25	684		644
	Hilton Domestic Operating Co. Inc.	5.125%	5/1/26	321		333
	Home Depot Inc.	5.875%	12/16/36	40,575		54,568
	Home Depot Inc.	5.400%	9/15/40	1,000		1,280
	Home Depot Inc.	5.950%	4/1/41	22,170		30,268
	Home Depot Inc.	4.200%	4/1/43	6,035		6,731
	Home Depot Inc.	4.875%	2/15/44	66,510		81,068
	Home Depot Inc.	4.400%	3/15/45	12,900		14,840
	Home Depot Inc.	4.250%	4/1/46	20,015		22,534
	Home Depot Inc.	3.900%	6/15/47	24,950		26,943
	Home Depot Inc.	4.500%	12/6/48	12,420		14,744
	Home Depot Inc.	3.500%	9/15/56	5,920		5,859
	Lennar Corp.	5.250%	6/1/26	150		160
	Lowe’s Cos. Inc.	3.700%	4/15/46	44,280		42,032
	Lowe’s Cos. Inc.	4.050%	5/3/47	34,935		34,995
	Mastercard Inc.	3.950%	2/26/48	25,075		27,999
	Mastercard Inc.	3.650%	6/1/49	3,775		4,027
	McDonald’s Corp.	4.450%	9/1/48	10,000		11,071
	MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer Inc.	5.625%	5/1/24	150		160
	MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer Inc.	4.500%	9/1/26	275		282
10	Motability Operations Group plc	3.625%	3/10/36	600		886
	NIKE Inc.	3.625%	5/1/43	30,604		31,754
	NIKE Inc.	3.875%	11/1/45	25,700		27,800
	NIKE Inc.	3.375%	11/1/46	19,840		19,793
12	Panther BF Aggregator 2 LP / Panther Finance Co. Inc.	8.500%	5/15/27	250		254

78

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	PulteGroup Inc.	5.500%	3/1/26	155		167
	Target Corp.	7.000%	1/15/38	1,100		1,646
	Target Corp.	4.000%	7/1/42	500		542
	Target Corp.	3.625%	4/15/46	700		717
	Visa Inc.	4.150%	12/14/35	21,915		25,460
	Visa Inc.	4.300%	12/14/45	44,495		52,597
	Visa Inc.	3.650%	9/15/47	35,820		38,851
	Walmart Inc.	3.250%	7/8/29	30,470		32,285
	Walmart Inc.	3.950%	6/28/38	93,920		105,338
	Walmart Inc.	5.625%	4/1/40	1,890		2,536
	Walmart Inc.	4.875%	7/8/40	2,000		2,479
	Walmart Inc.	5.000%	10/25/40	1,700		2,135
	Walmart Inc.	5.625%	4/15/41	3,850		5,220
	Walmart Inc.	4.000%	4/11/43	1,400		1,562
	Walmart Inc.	3.625%	12/15/47	70,485		75,955
	Walmart Inc.	4.050%	6/29/48	44,470		50,914
	Consumer Noncyclical (10.9%)
	Abbott Laboratories	4.750%	11/30/36	9,055		10,827
	Abbott Laboratories	4.900%	11/30/46	15,000		18,598
	AbbVie Inc.	4.875%	11/14/48	2,860		3,017
	Advocate Health & Hospitals Corp.	4.272%	8/15/48	7,880		8,930
	Allina Health System	3.887%	4/15/49	5,000		5,329
	Altria Group Inc.	5.375%	1/31/44	11,355		12,396
	Altria Group Inc.	3.875%	9/16/46	17,845		15,930
	AmerisourceBergen Corp.	4.300%	12/15/47	6,500		6,508
	Anheuser-Busch Cos. LLC	6.750%	12/15/27	400		500
	Anheuser-Busch Cos. LLC / Anheuser-Busch InBev Worldwide Inc.	4.700%	2/1/36	49,510		55,137
	Anheuser-Busch InBev Finance Inc.	4.000%	1/17/43	21,400		21,429
	Anheuser-Busch InBev Worldwide Inc.	4.375%	4/15/38	8,395		9,057
	Anheuser-Busch InBev Worldwide Inc.	8.200%	1/15/39	15,548		23,861
	Anheuser-Busch InBev Worldwide Inc.	8.000%	11/15/39	4,000		6,009
	Anheuser-Busch InBev Worldwide Inc.	3.750%	7/15/42	18,130		17,592
12	Aramark Services Inc.	5.000%	2/1/28	250		261
	Archer-Daniels-Midland Co.	4.500%	3/15/49	27,949		32,805
	Ascension Health	3.945%	11/15/46	15,385		16,732
4	Ascension Health	4.847%	11/15/53	8,855		10,903
12	Bausch Health Cos. Inc.	7.000%	3/15/24	150		158
12	Bausch Health Cos. Inc.	5.750%	8/15/27	105		110
12	Bausch Health Cos. Inc.	7.000%	1/15/28	165		171
11	Bayer Capital Corp. BV	2.125%	12/15/29	1,400		1,695
12	Bayer US Finance II LLC	4.700%	7/15/64	18,000		16,491
	Boston Scientific Corp.	4.700%	3/1/49	3,500		4,081
12	Bristol-Myers Squibb Co.	4.125%	6/15/39	31,350		34,031
12	Bristol-Myers Squibb Co.	4.250%	10/26/49	20,595		22,498
12	Cargill Inc.	4.760%	11/23/45	20,000		23,781
12	Cigna Corp.	4.800%	8/15/38	10,525		11,442
12	Cigna Corp.	4.900%	12/15/48	14,795		16,210
	City of Hope	5.623%	11/15/43	2,000		2,633
	City of Hope	4.378%	8/15/48	2,000		2,190
	Colgate-Palmolive Co.	3.700%	8/1/47	1,721		1,850
4	CommonSpirit Health	4.350%	11/1/42	19,000		19,038
	CVS Health Corp.	4.780%	3/25/38	15,070		15,963
	CVS Health Corp.	5.050%	3/25/48	1,775		1,916
	DaVita Inc.	5.125%	7/15/24	250		250
	Dignity Health	4.500%	11/1/42	21,483		21,910
	Dignity Health	5.267%	11/1/64	9,240		10,461
	Eli Lilly & Co.	3.875%	3/15/39	55,450		60,658
	Eli Lilly & Co.	3.700%	3/1/45	27,130		28,227
	Eli Lilly & Co.	3.950%	5/15/47	3,000		3,233
	Eli Lilly & Co.	3.950%	3/15/49	8,000		8,706
	Gilead Sciences Inc.	4.600%	9/1/35	20,525		23,342

79

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Gilead Sciences Inc.	5.650%	12/1/41	10,177		12,756
	Gilead Sciences Inc.	4.800%	4/1/44	29,545		33,530
	Gilead Sciences Inc.	4.500%	2/1/45	36,730		40,044
	Gilead Sciences Inc.	4.750%	3/1/46	29,440		33,351
	Gilead Sciences Inc.	4.150%	3/1/47	45,050		47,374
	GlaxoSmithKline Capital Inc.	6.375%	5/15/38	37,680		52,420
	HCA Inc.	5.375%	9/1/26	381		413
	HCA Inc.	5.250%	6/15/49	3,815		4,011
	Johnson & Johnson	3.550%	3/1/36	47,310		49,909
	Johnson & Johnson	3.625%	3/3/37	53,815		57,106
	Johnson & Johnson	3.400%	1/15/38	43,125		44,668
	Johnson & Johnson	3.700%	3/1/46	26,545		28,709
	Johnson & Johnson	3.750%	3/3/47	19,845		21,427
	Kaiser Foundation Hospitals	4.875%	4/1/42	12,365		15,069
	Kaiser Foundation Hospitals	4.150%	5/1/47	25,225		28,521
	Kimberly-Clark Corp.	6.625%	8/1/37	4,800		6,819
	Kimberly-Clark Corp.	3.200%	7/30/46	14,400		13,944
4	Mayo Clinic	3.774%	11/15/43	11,795		12,421
	Mead Johnson Nutrition Co.	4.600%	6/1/44	9,000		10,570
11	Medtronic Global Holdings SCA	1.750%	7/2/49	500		565
	Medtronic Inc.	4.375%	3/15/35	31,106		36,285
	Medtronic Inc.	4.625%	3/15/45	16,790		20,832
	Memorial Sloan-Kettering Cancer Center	5.000%	7/1/42	13,405		16,867
	Memorial Sloan-Kettering Cancer Center	4.125%	7/1/52	355		399
	Merck & Co. Inc.	3.900%	3/7/39	36,715		40,733
	Merck & Co. Inc.	3.600%	9/15/42	4,900		5,108
	Merck & Co. Inc.	4.150%	5/18/43	6,880		7,822
	Merck & Co. Inc.	3.700%	2/10/45	75,520		79,845
	Merck & Co. Inc.	4.000%	3/7/49	24,285		27,117
12	Nestle Holdings Inc.	3.900%	9/24/38	49,785		54,328
12	Nestle Holdings Inc.	4.000%	9/24/48	25,300		27,830
	New York & Presbyterian Hospital	4.024%	8/1/45	16,925		18,960
	New York & Presbyterian Hospital	4.063%	8/1/56	3,900		4,133
	New York & Presbyterian Hospital	4.763%	8/1/16	10,000		11,496
	Northwell Healthcare Inc.	4.800%	11/1/42	1,100		1,221
	Northwell Healthcare Inc.	3.979%	11/1/46	2,000		2,054
	Northwell Healthcare Inc.	4.260%	11/1/47	1,000		1,071
	Novartis Capital Corp.	4.400%	5/6/44	24,840		29,268
	NYU Hospitals Center	4.784%	7/1/44	2,000		2,358
	PeaceHealth Obligated Group	4.787%	11/15/48	6,300		7,540
	PepsiCo Inc.	4.000%	3/5/42	2,100		2,324
	PepsiCo Inc.	3.600%	8/13/42	1,000		1,047
	PepsiCo Inc.	4.450%	4/14/46	30,000		35,402
	PepsiCo Inc.	3.450%	10/6/46	32,755		33,485
	PepsiCo Inc.	4.000%	5/2/47	22,185		24,681
	PepsiCo Inc.	3.375%	7/29/49	2,000		1,990
	Pfizer Inc.	4.100%	9/15/38	34,780		38,764
	Pfizer Inc.	3.900%	3/15/39	34,185		37,249
	Pfizer Inc.	7.200%	3/15/39	34,912		53,805
	Pfizer Inc.	4.300%	6/15/43	7,780		8,826
	Pfizer Inc.	4.400%	5/15/44	8,615		9,913
	Pfizer Inc.	4.125%	12/15/46	12,650		13,981
	Pfizer Inc.	4.200%	9/15/48	24,470		27,287
	Pfizer Inc.	4.000%	3/15/49	2,000		2,177
	Philip Morris International Inc.	6.375%	5/16/38	6,075		8,300
11	Philip Morris International Inc.	1.450%	8/1/39	600		651
	Philip Morris International Inc.	4.375%	11/15/41	3,000		3,217
	Philip Morris International Inc.	4.500%	3/20/42	5,000		5,449
	Philip Morris International Inc.	3.875%	8/21/42	10,120		10,187
	Philip Morris International Inc.	4.125%	3/4/43	20,170		20,967
	Philip Morris International Inc.	4.875%	11/15/43	22,345		25,667
	Philip Morris International Inc.	4.250%	11/10/44	25,695		27,180
12	Post Holdings Inc.	5.500%	12/15/29	208		210

80

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Procter & Gamble Co.	3.500%	10/25/47	23,915		25,520
4	Providence St. Joseph Health Obligated Group	3.744%	10/1/47	4,605		4,820
4	Providence St. Joseph Health Obligated Group	3.930%	10/1/48	6,985		7,475
12	SC Johnson & Son Inc.	4.000%	5/15/43	28,110		29,235
12	SC Johnson & Son Inc.	4.750%	10/15/46	3,535		4,187
	Tyson Foods Inc.	5.100%	9/28/48	3,110		3,542
11	Unilever NV	1.625%	2/12/33	1,500		1,891
	Wyeth LLC	6.500%	2/1/34	1,310		1,822
	Wyeth LLC	6.000%	2/15/36	4,392		5,809
	Wyeth LLC	5.950%	4/1/37	56,800		75,322
	Energy (3.2%)
	Baker Hughes a GE Co. LLC / Baker Hughes Co-Obligor Inc.	4.080%	12/15/47	4,000		3,888
	Cheniere Corpus Christi Holdings LLC	5.125%	6/30/27	520		565
	ConocoPhillips	7.000%	3/30/29	9,550		12,537
	ConocoPhillips	5.900%	10/15/32	1,400		1,814
	ConocoPhillips	5.900%	5/15/38	1,000		1,323
	ConocoPhillips	6.500%	2/1/39	52,636		73,589
	ConocoPhillips Canada Funding Co. I	5.950%	10/15/36	1,500		1,960
	ConocoPhillips Co.	4.300%	11/15/44	14,450		16,189
	ConocoPhillips Co.	5.950%	3/15/46	24,800		34,232
12	Cosan Ltd.	5.500%	9/20/29	775		780
	Devon Energy Corp.	5.000%	6/15/45	2,830		3,203
12	Diamondback Energy Inc.	4.750%	11/1/24	440		452
	Diamondback Energy Inc.	4.750%	11/1/24	295		303
	Dominion Energy Gas Holdings LLC	4.800%	11/1/43	1,575		1,814
	Energy Transfer Operating LP	5.500%	6/1/27	1,817		2,034
	Energy Transfer Partners LP	5.300%	4/15/47	2,320		2,414
	Exxon Mobil Corp.	3.567%	3/6/45	12,625		13,235
	Exxon Mobil Corp.	4.114%	3/1/46	46,190		52,800
	Kinder Morgan Energy Partners LP	5.000%	8/15/42	65		69
	Kinder Morgan Energy Partners LP	5.000%	3/1/43	165		175
	Marathon Petroleum Corp.	4.500%	4/1/48	3,229		3,264
	Occidental Petroleum Corp.	4.400%	4/15/46	19,285		19,577
	Occidental Petroleum Corp.	4.200%	3/15/48	2,000		1,969
12	Parsley Energy LLC / Parsley Finance Corp.	5.250%	8/15/25	105		106
12	Parsley Energy LLC / Parsley Finance Corp.	5.625%	10/15/27	155		160
	Petro-Canada	6.800%	5/15/38	9,468		13,095
	Shell International Finance BV	4.125%	5/11/35	30,515		34,341
	Shell International Finance BV	6.375%	12/15/38	4,300		6,133
	Shell International Finance BV	5.500%	3/25/40	13,990		18,120
	Shell International Finance BV	4.550%	8/12/43	18,195		21,437
	Shell International Finance BV	4.375%	5/11/45	46,905		54,159
	Shell International Finance BV	4.000%	5/10/46	32,422		35,866
	Shell International Finance BV	3.750%	9/12/46	47,765		50,861
12	Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp.	4.750%	10/1/23	240		243
12	Targa Resources Partners LP / Targa Resources Partners Finance Corp.	6.500%	7/15/27	125		136
12	Targa Resources Partners LP / Targa Resources Partners Finance Corp.	6.875%	1/15/29	125		138
11	Total Capital International SA	1.375%	10/4/29	1,600		1,980
	Total Capital International SA	2.829%	1/10/30	1,000		1,005
	Total Capital International SA	3.461%	7/12/49	2,500		2,490
	TransCanada PipeLines Ltd.	6.200%	10/15/37	5,630		7,075
	TransCanada PipeLines Ltd.	7.625%	1/15/39	33,330		47,765
	TransCanada PipeLines Ltd.	6.100%	6/1/40	15,775		19,799
	TransCanada PipeLines Ltd.	5.000%	10/16/43	8,000		8,962
	TransCanada PipeLines Ltd.	4.875%	5/15/48	2,000		2,248
	TransCanada PipeLines Ltd.	5.100%	3/15/49	23,920		27,670
	Other Industrial (0.3%)
	Georgetown University	4.315%	4/1/49	6,995		8,181
	Georgetown University	5.215%	10/1/18	940		1,171

81

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
4	Massachusetts Institute of Technology	3.959%	7/1/38	25,200		27,674
	Massachusetts Institute of Technology	5.600%	7/1/11	1,100		1,713
	Massachusetts Institute of Technology	3.885%	7/1/16	18,335		19,831
12	President & Fellows of Harvard College Massachusetts GO	6.500%	1/15/39	3,865		5,728
	Technology (10.0%)
	Apple Inc.	4.500%	2/23/36	15,000		17,655
	Apple Inc.	3.850%	5/4/43	53,630		56,930
	Apple Inc.	3.450%	2/9/45	38,360		38,439
	Apple Inc.	4.375%	5/13/45	45,875		52,478
	Apple Inc.	4.650%	2/23/46	51,777		61,823
	Apple Inc.	3.850%	8/4/46	40,559		43,334
	Apple Inc.	4.250%	2/9/47	39,230		44,174
	Apple Inc.	3.750%	11/13/47	27,620		29,165
	Applied Materials Inc.	5.100%	10/1/35	100		122
	Broadcom Corp. / Broadcom Cayman Finance Ltd.	3.875%	1/15/27	17,180		16,731
12	CDK Global Inc.	5.250%	5/15/29	150		155
	Cisco Systems Inc.	5.900%	2/15/39	35,340		49,027
	Cisco Systems Inc.	5.500%	1/15/40	16,338		21,777
12	CommScope Finance LLC	8.250%	3/1/27	260		256
	Equinix Inc.	5.375%	5/15/27	155		166
	Fiserv Inc.	4.400%	7/1/49	3,000		3,209
	Intel Corp.	4.100%	5/19/46	18,330		20,309
	Intel Corp.	4.100%	5/11/47	36,360		40,145
	Intel Corp.	3.734%	12/8/47	56,439		59,694
	International Business Machines Corp.	4.150%	5/15/39	105,125		114,152
	International Business Machines Corp.	4.000%	6/20/42	2,200		2,313
	International Business Machines Corp.	4.250%	5/15/49	95,895		103,264
	Microsoft Corp.	3.500%	2/12/35	7,835		8,380
	Microsoft Corp.	3.450%	8/8/36	32,325		34,146
	Microsoft Corp.	4.100%	2/6/37	53,225		60,868
	Microsoft Corp.	4.500%	10/1/40	3,900		4,681
	Microsoft Corp.	5.300%	2/8/41	1,500		1,972
	Microsoft Corp.	3.500%	11/15/42	1,750		1,843
	Microsoft Corp.	3.750%	5/1/43	10,000		10,752
	Microsoft Corp.	4.875%	12/15/43	500		629
	Microsoft Corp.	3.750%	2/12/45	75,350		81,892
	Microsoft Corp.	4.450%	11/3/45	70,670		85,529
	Microsoft Corp.	3.700%	8/8/46	86,005		93,118
	Microsoft Corp.	4.250%	2/6/47	66,743		78,416
	Microsoft Corp.	4.000%	2/12/55	10,075		11,232
	Microsoft Corp.	4.750%	11/3/55	50,365		64,460
	Microsoft Corp.	3.950%	8/8/56	46,076		51,214
	Microsoft Corp.	4.500%	2/6/57	4,900		5,986
	Oracle Corp.	3.850%	7/15/36	5,250		5,606
	Oracle Corp.	3.800%	11/15/37	34,500		36,363
	Oracle Corp.	6.500%	4/15/38	63,400		89,303
	Oracle Corp.	6.125%	7/8/39	12,129		16,600
	Oracle Corp.	5.375%	7/15/40	49,740		62,378
	Oracle Corp.	4.125%	5/15/45	33,255		36,049
	Oracle Corp.	4.000%	7/15/46	87,475		92,608
	Oracle Corp.	4.000%	11/15/47	42,035		45,032
	Oracle Corp.	4.375%	5/15/55	25,000		27,878
	QUALCOMM Inc.	4.800%	5/20/45	8,000		9,118
	QUALCOMM Inc.	4.300%	5/20/47	28,186		30,024
11	SAP SE	1.375%	3/13/30	2,400		2,949
12	SS&C Technologies Inc.	5.500%	9/30/27	320		333
12	Tencent Holdings Ltd.	3.595%	1/19/28	26,555		27,285
12	Tencent Holdings Ltd.	3.925%	1/19/38	35,410		36,551
	Verisk Analytics Inc.	5.500%	6/15/45	2,000		2,344
	Western Digital Corp.	4.750%	2/15/26	147		146
	Transportation (2.1%)
	Burlington Northern Santa Fe LLC	7.950%	8/15/30	3,728		5,345

82

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Burlington Northern Santa Fe LLC	5.750%	5/1/40	15,000		19,745
	Burlington Northern Santa Fe LLC	4.950%	9/15/41	2,266		2,733
	Burlington Northern Santa Fe LLC	4.400%	3/15/42	24,790		28,046
	Burlington Northern Santa Fe LLC	4.375%	9/1/42	41,150		46,439
	Burlington Northern Santa Fe LLC	4.450%	3/15/43	11,200		12,767
	Burlington Northern Santa Fe LLC	5.150%	9/1/43	2,000		2,451
	Burlington Northern Santa Fe LLC	4.900%	4/1/44	24,560		29,755
	Burlington Northern Santa Fe LLC	4.550%	9/1/44	43,085		49,803
	Burlington Northern Santa Fe LLC	4.150%	4/1/45	12,335		13,648
	Burlington Northern Santa Fe LLC	3.900%	8/1/46	7,265		7,764
	Burlington Northern Santa Fe LLC	4.125%	6/15/47	11,910		13,166
	Burlington Northern Santa Fe LLC	4.050%	6/15/48	3,265		3,574
	Burlington Northern Santa Fe LLC	4.150%	12/15/48	16,290		17,991
	Burlington Northern Santa Fe LLC	3.550%	2/15/50	31,105		31,285
	Canadian National Railway Co.	3.650%	2/3/48	32,000		33,677
	Canadian National Railway Co.	4.450%	1/20/49	14,855		17,891
	Norfolk Southern Corp.	4.100%	5/15/49	3,000		3,203
	Union Pacific Corp.	3.550%	8/15/39	845		851
	Union Pacific Corp.	4.375%	11/15/65	22,065		23,252
	Union Pacific Corp.	4.100%	9/15/67	15,550		15,414
	United Parcel Service Inc.	6.200%	1/15/38	14,700		20,194
	United Parcel Service Inc.	4.875%	11/15/40	2,700		3,187
	United Parcel Service Inc.	3.625%	10/1/42	5,820		5,831
						7,943,541
Utilities (15.1%)
	Electric (14.5%)
	AEP Texas Inc.	3.800%	10/1/47	2,455		2,531
	AEP Texas Inc.	4.150%	5/1/49	4,835		5,362
	AEP Transmission Co. LLC	4.000%	12/1/46	2,615		2,823
	AEP Transmission Co. LLC	3.750%	12/1/47	33,965		35,265
	AEP Transmission Co. LLC	4.250%	9/15/48	5,580		6,217
	Alabama Power Co.	6.000%	3/1/39	14,740		19,698
	Alabama Power Co.	5.500%	3/15/41	26,943		33,053
	Alabama Power Co.	5.200%	6/1/41	15,000		17,767
	Alabama Power Co.	3.750%	3/1/45	22,325		22,984
	Alabama Power Co.	4.300%	7/15/48	5,285		5,964
	Ameren Illinois Co.	3.700%	12/1/47	10,000		10,370
	Ameren Illinois Co.	4.500%	3/15/49	26,150		31,149
	Appalachian Power Co.	6.700%	8/15/37	35,900		47,811
	Baltimore Gas & Electric Co.	6.350%	10/1/36	1,230		1,669
	Baltimore Gas & Electric Co.	4.250%	9/15/48	26,475		29,600
	Berkshire Hathaway Energy Co.	6.125%	4/1/36	17,587		23,799
	Berkshire Hathaway Energy Co.	5.950%	5/15/37	3,000		3,975
	Berkshire Hathaway Energy Co.	5.150%	11/15/43	27,000		33,471
	Berkshire Hathaway Energy Co.	4.500%	2/1/45	43,625		49,880
	Berkshire Hathaway Energy Co.	4.450%	1/15/49	7,150		8,187
	CenterPoint Energy Houston Electric LLC	4.250%	2/1/49	5,440		6,206
	Commonwealth Edison Co.	5.900%	3/15/36	2,450		3,211
	Commonwealth Edison Co.	3.800%	10/1/42	20,805		21,881
	Commonwealth Edison Co.	4.600%	8/15/43	15,274		17,872
	Commonwealth Edison Co.	4.700%	1/15/44	15,955		19,312
	Commonwealth Edison Co.	3.700%	3/1/45	13,990		14,477
	Commonwealth Edison Co.	4.350%	11/15/45	13,370		15,280
	Commonwealth Edison Co.	3.650%	6/15/46	11,611		12,134
	Commonwealth Edison Co.	4.000%	3/1/48	8,765		9,666
	Commonwealth Edison Co.	4.000%	3/1/49	13,485		14,872
	Connecticut Light & Power Co.	6.350%	6/1/36	14,435		19,450
	Connecticut Light & Power Co.	4.300%	4/15/44	940		1,072
	Connecticut Light & Power Co.	4.150%	6/1/45	8,445		9,399
	Consolidated Edison Co. of New York Inc.	5.100%	6/15/33	730		840
	Consolidated Edison Co. of New York Inc.	5.850%	3/15/36	10,000		12,850
	Consolidated Edison Co. of New York Inc.	6.200%	6/15/36	10,637		14,154
	Consolidated Edison Co. of New York Inc.	6.750%	4/1/38	12,990		18,643

83

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Consolidated Edison Co. of New York Inc.	5.500%	12/1/39	8,729		11,014
	Consolidated Edison Co. of New York Inc.	5.700%	6/15/40	7,995		10,538
	Consolidated Edison Co. of New York Inc.	4.200%	3/15/42	10,568		11,453
	Consolidated Edison Co. of New York Inc.	3.950%	3/1/43	8,740		9,205
	Consolidated Edison Co. of New York Inc.	4.450%	3/15/44	47,085		53,144
	Consolidated Edison Co. of New York Inc.	4.500%	12/1/45	5,715		6,508
	Consolidated Edison Co. of New York Inc.	3.850%	6/15/46	1,000		1,044
	Consolidated Edison Co. of New York Inc.	3.875%	6/15/47	1,000		1,046
	Consolidated Edison Co. of New York Inc.	4.650%	12/1/48	1,000		1,177
	Consolidated Edison Co. of New York Inc.	4.125%	5/15/49	28,860		31,598
	Consolidated Edison Co. of New York Inc.	4.300%	12/1/56	17,545		19,202
	Consolidated Edison Co. of New York Inc.	4.500%	5/15/58	14,000		15,908
	Consumers Energy Co.	3.750%	2/15/50	2,000		2,143
	Dominion Energy South Carolina Inc.	6.625%	2/1/32	31,527		41,893
	Dominion Energy South Carolina Inc.	6.050%	1/15/38	11,775		15,502
	Dominion Energy South Carolina Inc.	5.450%	2/1/41	6,150		7,639
	Dominion Energy South Carolina Inc.	4.350%	2/1/42	523		579
	Dominion Energy South Carolina Inc.	4.600%	6/15/43	4,425		5,081
	DTE Electric Co.	3.700%	3/15/45	1,965		2,057
	DTE Electric Co.	4.050%	5/15/48	1,000		1,114
	Duke Energy Carolinas LLC	6.450%	10/15/32	8,200		11,032
	Duke Energy Carolinas LLC	6.100%	6/1/37	51,000		67,725
	Duke Energy Carolinas LLC	5.300%	2/15/40	8,480		10,713
	Duke Energy Carolinas LLC	4.250%	12/15/41	16,200		18,039
	Duke Energy Carolinas LLC	4.000%	9/30/42	42,222		45,532
	Duke Energy Carolinas LLC	3.750%	6/1/45	1,735		1,820
	Duke Energy Carolinas LLC	3.875%	3/15/46	5,645		5,966
	Duke Energy Carolinas LLC	3.700%	12/1/47	2,690		2,770
	Duke Energy Florida LLC	6.350%	9/15/37	800		1,120
	Duke Energy Florida LLC	5.650%	4/1/40	11,860		15,479
	Duke Energy Florida LLC	3.400%	10/1/46	11,850		11,617
	Duke Energy Florida LLC	4.200%	7/15/48	1,000		1,122
	Duke Energy Indiana LLC	6.120%	10/15/35	5,723		7,613
	Duke Energy Indiana LLC	6.350%	8/15/38	818		1,145
	Duke Energy Indiana LLC	6.450%	4/1/39	10,485		14,831
	Duke Energy Indiana LLC	4.200%	3/15/42	14,700		15,836
	Duke Energy Indiana LLC	4.900%	7/15/43	28,610		34,325
	Duke Energy Ohio Inc.	3.700%	6/15/46	9,825		10,143
	Duke Energy Ohio Inc.	4.300%	2/1/49	19,000		21,506
	Duke Energy Progress LLC	4.100%	5/15/42	2,250		2,463
	Duke Energy Progress LLC	4.100%	3/15/43	23,186		25,241
	Duke Energy Progress LLC	4.150%	12/1/44	29,945		32,968
	Duke Energy Progress LLC	4.200%	8/15/45	22,178		24,683
	Duke Energy Progress LLC	3.700%	10/15/46	27,000		27,784
	Entergy Louisiana LLC	3.120%	9/1/27	340		350
	Entergy Louisiana LLC	4.000%	3/15/33	687		763
	Entergy Louisiana LLC	4.950%	1/15/45	1,105		1,169
	Entergy Louisiana LLC	4.200%	4/1/50	5,000		5,551
	Florida Power & Light Co.	5.960%	4/1/39	16,060		21,884
	Florida Power & Light Co.	5.690%	3/1/40	700		924
	Florida Power & Light Co.	5.250%	2/1/41	21,212		26,740
	Florida Power & Light Co.	4.125%	2/1/42	9,000		9,956
	Florida Power & Light Co.	3.800%	12/15/42	22,370		23,645
	Florida Power & Light Co.	3.700%	12/1/47	10,745		11,383
	Florida Power & Light Co.	3.950%	3/1/48	2,000		2,203
	Florida Power & Light Co.	3.990%	3/1/49	3,000		3,351
	Georgia Power Co.	4.750%	9/1/40	33,945		37,998
	Georgia Power Co.	4.300%	3/15/42	8,854		9,434
11	innogy Finance BV	5.750%	2/14/33	1,000		1,800
4	John Sevier Combined Cycle Generation LLC	4.626%	1/15/42	21,096		24,916
	Kansas City Power & Light Co.	4.125%	4/1/49	27,800		30,755
	Kentucky Utilities Co.	5.125%	11/1/40	1,000		1,223
	Kentucky Utilities Co.	4.650%	11/15/43	1,000		1,151
	Kentucky Utilities Co.	4.375%	10/1/45	18,000		20,412

84

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Louisville Gas & Electric Co.	4.250%	4/1/49	19,050		21,662
12	Massachusetts Electric Co.	4.004%	8/15/46	10,890		11,466
	MidAmerican Energy Co.	5.800%	10/15/36	500		652
	MidAmerican Energy Co.	4.800%	9/15/43	27,525		33,104
	MidAmerican Energy Co.	4.250%	5/1/46	21,395		24,397
	MidAmerican Energy Co.	4.250%	7/15/49	20,510		23,673
12	Monongahela Power Co.	5.400%	12/15/43	15,640		19,847
	National Rural Utilities Cooperative Finance Corp.	8.000%	3/1/32	2,725		4,001
	National Rural Utilities Cooperative Finance Corp.	4.023%	11/1/32	4,361		4,899
	National Rural Utilities Cooperative Finance Corp.	4.300%	3/15/49	17,055		19,416
	Nevada Power Co.	6.650%	4/1/36	5,830		7,935
	Nevada Power Co.	5.375%	9/15/40	16,430		19,807
	Nevada Power Co.	5.450%	5/15/41	21,620		26,210
	Northern States Power Co.	6.200%	7/1/37	27,900		38,030
	Northern States Power Co.	5.350%	11/1/39	800		1,014
	Northern States Power Co.	4.000%	8/15/45	850		928
	Northern States Power Co.	3.600%	9/15/47	9,675		10,054
	Northern States Power Co.	4.200%	9/1/48	12,250		13,329
12	NRG Energy Inc.	5.250%	6/15/29	205		216
	Oglethorpe Power Corp.	4.200%	12/1/42	23,677		23,984
	Ohio Power Co.	4.000%	6/1/49	5,000		5,419
	Oklahoma Gas & Electric Co.	4.550%	3/15/44	500		553
	Oncor Electric Delivery Co. LLC	7.250%	1/15/33	1,300		1,890
	Oncor Electric Delivery Co. LLC	7.500%	9/1/38	1,500		2,352
	Oncor Electric Delivery Co. LLC	5.250%	9/30/40	3,225		4,034
	Oncor Electric Delivery Co. LLC	4.550%	12/1/41	11,755		13,650
	Oncor Electric Delivery Co. LLC	3.750%	4/1/45	28,000		29,408
	Oncor Electric Delivery Co. LLC	3.800%	9/30/47	16,425		17,446
12	Oncor Electric Delivery Co. LLC	3.800%	6/1/49	1,500		1,594
	PacifiCorp	5.250%	6/15/35	1,301		1,571
	PacifiCorp	6.100%	8/1/36	15,000		19,867
	PacifiCorp	6.250%	10/15/37	7,815		10,610
	PacifiCorp	6.350%	7/15/38	36,000		49,558
	PacifiCorp	6.000%	1/15/39	32,296		43,602
	PacifiCorp	4.100%	2/1/42	22,570		24,619
	PacifiCorp	4.125%	1/15/49	4,000		4,471
	PacifiCorp	4.150%	2/15/50	36,020		40,547
	PECO Energy Co.	4.800%	10/15/43	15,530		18,237
	PECO Energy Co.	4.150%	10/1/44	418		462
	PECO Energy Co.	3.700%	9/15/47	15,500		16,100
	PECO Energy Co.	3.900%	3/1/48	27,350		29,405
	Potomac Electric Power Co.	6.500%	11/15/37	1,225		1,699
	Potomac Electric Power Co.	7.900%	12/15/38	150		229
	Potomac Electric Power Co.	4.150%	3/15/43	15,575		17,027
	PPL Electric Utilities Corp.	6.450%	8/15/37	10,200		13,847
	PPL Electric Utilities Corp.	6.250%	5/15/39	10,975		15,136
	PPL Electric Utilities Corp.	5.200%	7/15/41	1,250		1,515
	PPL Electric Utilities Corp.	3.950%	6/1/47	12,500		13,605
	Public Service Co. of Colorado	3.600%	9/15/42	20,555		20,902
	Public Service Co. of Colorado	4.300%	3/15/44	363		408
	Public Service Co. of Colorado	4.050%	9/15/49	32,010		35,507
	Public Service Electric & Gas Co.	3.650%	9/1/42	21,083		21,706
	Public Service Electric & Gas Co.	3.850%	5/1/49	3,000		3,226
	Puget Sound Energy Inc.	5.483%	6/1/35	200		240
	Puget Sound Energy Inc.	6.274%	3/15/37	500		666
	Puget Sound Energy Inc.	5.757%	10/1/39	1,100		1,432
	Puget Sound Energy Inc.	5.795%	3/15/40	18,130		23,535
	Puget Sound Energy Inc.	5.764%	7/15/40	1,100		1,413
	Puget Sound Energy Inc.	5.638%	4/15/41	1,150		1,466
	Puget Sound Energy Inc.	4.434%	11/15/41	1,425		1,562
	Puget Sound Energy Inc.	4.300%	5/20/45	400		443
	Puget Sound Energy Inc.	4.223%	6/15/48	29,820		33,179
	San Diego Gas & Electric Co.	4.100%	6/15/49	3,000		3,197
	Southern California Edison Co.	6.000%	1/15/34	6,712		8,260

85

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Southern California Edison Co.	5.950%	2/1/38	8,285		10,392
	Southern California Edison Co.	4.500%	9/1/40	14,295		15,406
	Southern California Edison Co.	3.900%	12/1/41	7,660		7,423
	Southern California Edison Co.	4.050%	3/15/42	1,800		1,834
	Southern California Edison Co.	3.900%	3/15/43	19,927		19,918
	Southern California Edison Co.	4.650%	10/1/43	11,645		12,901
	Southern California Edison Co.	4.000%	4/1/47	5,000		5,116
	Southern California Edison Co.	4.125%	3/1/48	36,182		37,559
	Southwestern Public Service Co.	4.500%	8/15/41	24,055		27,278
	Southwestern Public Service Co.	3.400%	8/15/46	3,500		3,390
	Southwestern Public Service Co.	3.700%	8/15/47	20,540		21,148
	Southwestern Public Service Co.	3.750%	6/15/49	1,500		1,560
	Tampa Electric Co.	6.150%	5/15/37	29,250		38,108
	Union Electric Co.	3.900%	9/15/42	460		487
	Union Electric Co.	4.000%	4/1/48	20,250		21,966
	Virginia Electric & Power Co.	6.000%	5/15/37	57,330		74,726
	Virginia Electric & Power Co.	6.350%	11/30/37	2,000		2,713
	Virginia Electric & Power Co.	4.450%	2/15/44	12,490		14,204
	Virginia Electric & Power Co.	4.000%	11/15/46	8,725		9,403
	Virginia Electric & Power Co.	3.800%	9/15/47	29,319		30,707
	Virginia Electric & Power Co.	4.600%	12/1/48	16,310		19,273
12	Vistra Operations Co. LLC	5.000%	7/31/27	260		266
	Westar Energy Inc.	4.125%	3/1/42	1,175		1,275
	Westar Energy Inc.	4.625%	9/1/43	1,300		1,488
	Wisconsin Electric Power Co.	5.625%	5/15/33	550		691
	Natural Gas (0.6%)
	Atmos Energy Corp.	4.150%	1/15/43	1,500		1,652
12	Brooklyn Union Gas Co.	3.865%	3/4/29	18,125		19,489
12	Brooklyn Union Gas Co.	4.487%	3/4/49	35,000		40,602
12	KeySpan Gas East Corp.	5.819%	4/1/41	4,035		5,165
	Southern California Gas Co.	5.125%	11/15/40	1,922		2,300
	Southern California Gas Co.	4.125%	6/1/48	30,835		33,648
	Southern California Gas Co.	4.300%	1/15/49	14,075		15,764
	Southern California Gas Co.	3.950%	2/15/50	1,000		1,074
						2,856,965
Total Corporate Bonds (Cost $12,562,664)						14,184,157
Sovereign Bonds (0.9%)
	Argentine Republic	6.875%	4/22/21	1,455		1,308
	Argentine Republic	6.875%	1/26/27	1,000		826
	Bermuda	4.854%	2/6/24	632		693
4	Bermuda	3.717%	1/25/27	4,420		4,614
4	Bermuda	4.750%	2/15/29	1,750		1,966
12	CDP Financial Inc.	5.600%	11/25/39	1,500		2,007
	Equinor ASA	4.250%	11/23/41	2,000		2,256
	Equinor ASA	3.950%	5/15/43	43,640		47,436
12	Export-Import Bank of India	3.875%	2/1/28	960		995
4	Federative Republic of Brazil	4.500%	5/30/29	1,380		1,437
11,12	Kingdom of Spain	2.700%	10/31/48	3,430		5,123
	Nexen Energy ULC	5.875%	3/10/35	2,700		3,376
12	Ontario Teachers’ Cadillac Fairview Properties Trust	4.125%	2/1/29	3,150		3,417
	Perusahaan Penerbit SBSN Indonesia III	4.550%	3/29/26	250		269
	Perusahaan Penerbit SBSN Indonesia III	4.150%	3/29/27	400		423
	Petroleos Mexicanos	6.500%	3/13/27	2,520		2,501
	Petroleos Mexicanos	5.350%	2/12/28	4,740		4,356
	Petroleos Mexicanos	6.350%	2/12/48	1,937		1,692
4	Republic of Chile	3.500%	1/25/50	23,887		24,370
	Republic of Colombia	10.375%	1/28/33	1,330		2,082
11	Republic of Croatia	3.000%	3/20/27	300		390
11	Republic of Croatia	1.125%	6/19/29	315		356
4,6,12	Republic of El Salvador	7.125%	1/20/50	600		600
4,12	Republic of Guatemala	6.125%	6/1/50	780		845
	Republic of Indonesia	4.125%	1/15/25	550		583

86

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
11	Republic of Lithuania	1.625%	6/19/49	480		596
11,12	Republic of Romania	2.124%	7/16/31	440		493
11,12	Republic of Romania	4.625%	4/3/49	933		1,284
11	Republic of Serbia	1.500%	6/26/29	2,185		2,430
12	State of Qatar	4.817%	3/14/49	34,780		40,198
13	United Mexican States	5.750%	3/5/26	208,960		9,982
Total Sovereign Bonds (Cost $155,764)						168,904
Taxable Municipal Bonds (9.8%)
	Allentown PA Neighborhood Improvement Zone Development Authority Revenue	5.420%	5/1/21	1,000		1,007
	Allentown PA Neighborhood Improvement Zone Development Authority Revenue	5.620%	5/1/22	1,930		1,963
	American Municipal Power Ohio Inc. Revenue (Prairie State Energy Campus Project)	6.270%	2/15/50	45,510		60,634
	Bay Area Toll Authority California Toll Bridge Revenue (San Francisco Bay Area)	6.793%	4/1/30	1,800		2,200
	Bay Area Toll Authority California Toll Bridge Revenue (San Francisco Bay Area)	6.918%	4/1/40	23,745		34,245
	Bay Area Toll Authority California Toll Bridge Revenue (San Francisco Bay Area)	6.263%	4/1/49	24,320		36,787
	Bay Area Toll Authority California Toll Bridge Revenue (San Francisco Bay Area)	7.043%	4/1/50	1,400		2,265
	California GO	4.500%	4/1/33	7,360		8,367
	California GO	7.500%	4/1/34	25,400		38,085
	California GO	4.600%	4/1/38	36,195		40,518
	California GO	7.550%	4/1/39	35,880		57,542
	California GO	7.300%	10/1/39	75,015		114,105
	California GO	7.350%	11/1/39	6,705		10,259
	California GO	7.625%	3/1/40	9,100		14,522
	California GO	7.600%	11/1/40	64,585		105,830
	California Public Works Board Lease Revenue (Various Capital Projects)	8.361%	10/1/34	1,200		1,855
	Chicago IL O’Hare International Airport Revenue	6.395%	1/1/40	1,600		2,268
	Chicago IL O’Hare International Airport Revenue	4.472%	1/1/49	22,110		26,080
	Chicago IL Transit Authority Sales Tax Receipts Revenue	6.200%	12/1/40	1,080		1,410
	Chicago IL Transit Authority Sales Tax Receipts Revenue	6.899%	12/1/40	11,695		15,910
	Chicago IL Transit Authority Transfer Tax Receipts Revenue	6.899%	12/1/40	43,340		58,962
	Commonwealth Financing Authority Pennsylvania Revenue	4.144%	6/1/38	17,060		18,644
14	Commonwealth Financing Authority Pennsylvania Revenue	5.197%	6/1/26	2,500		2,814
	Commonwealth Financing Authority Pennsylvania Revenue	3.864%	6/1/38	19,285		20,405
	Dallas TX Area Rapid Transit Revenue	5.999%	12/1/44	200		282
	District of Columbia Water & Sewer Authority Public Utility Revenue	4.814%	10/1/14	2,000		2,559
	Duke University North Carolina Revenue	5.850%	4/1/37	30,450		41,206
	George Washington University	4.300%	9/15/44	3,000		3,435
	Georgia Municipal Electric Power Authority Revenue	6.637%	4/1/57	32,657		41,937
	Georgia Municipal Electric Power Authority Revenue	6.655%	4/1/57	5,460		7,412
	Grand Parkway Transportation Corp. Texas System Toll Revenue	5.184%	10/1/42	1,500		1,892
	Houston TX GO	6.290%	3/1/32	2,220		2,719
	Illinois Toll Highway Authority Revenue	6.184%	1/1/34	17,330		23,218
	Kansas Development Finance Authority Revenue	4.727%	4/15/37	2,500		2,902
	Kansas Development Finance Authority Revenue	4.927%	4/15/45	20,480		24,520
	Los Angeles CA Department of Water & Power Revenue	5.716%	7/1/39	400		531

87

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Los Angeles CA Department of Water & Power Revenue	6.008%	7/1/39	1,200		1,562
	Los Angeles CA Department of Water & Power Revenue	6.574%	7/1/45	20,715		31,311
	Los Angeles CA Department of Water & Power Revenue	6.603%	7/1/50	1,900		2,953
	Los Angeles CA Unified School District GO	5.755%	7/1/29	2,000		2,446
	Los Angeles CA Unified School District GO	5.750%	7/1/34	900		1,152
	Los Angeles CA Unified School District GO	6.758%	7/1/34	41,675		57,602
	Los Angeles County CA Metropolitan Transportation Authority Sales Tax Revenue	5.735%	6/1/39	15,100		19,870
15	New Jersey Economic Development Authority Revenue (State Pension Funding)	7.425%	2/15/29	9,660		12,237
	New Jersey Turnpike Authority Revenue	3.729%	1/1/36	6,750		7,112
	New Jersey Turnpike Authority Revenue	7.414%	1/1/40	14,432		22,720
	New Jersey Turnpike Authority Revenue	7.102%	1/1/41	42,463		65,047
	New York City NY Municipal Water Finance Authority Water & Sewer System Revenue	5.724%	6/15/42	12,780		17,658
	New York City NY Municipal Water Finance Authority Water & Sewer System Revenue	5.952%	6/15/42	18,210		25,675
	New York City NY Municipal Water Finance Authority Water & Sewer System Revenue	6.011%	6/15/42	6,980		9,919
	New York City NY Municipal Water Finance Authority Water & Sewer System Revenue	6.282%	6/15/42	700		738
	New York City NY Municipal Water Finance Authority Water & Sewer System Revenue	5.882%	6/15/44	32,580		46,399
	New York City NY Transitional Finance Authority Future Tax Revenue	5.508%	8/1/37	2,875		3,686
	New York City Transitional Finance Authority Future Tax Secured Revenue	3.430%	8/1/30	14,540		15,249
	New York Metropolitan Transportation Authority Revenue (Dedicated Tax Fund)	7.336%	11/15/39	63,315		98,669
	New York Metropolitan Transportation Authority Revenue (Dedicated Tax Fund)	6.089%	11/15/40	3,865		5,239
	New York State Dormitory Authority Revenue (Personal Income Tax)	5.289%	3/15/33	7,325		8,839
	New York State Dormitory Authority Revenue (Personal Income Tax)	5.628%	3/15/39	15,975		19,829
	New York State Dormitory Authority Revenue (Personal Income Tax)	5.600%	3/15/40	200		257
	New York State GO	5.590%	3/1/35	1,000		1,301
	New York State Urban Development Corp	3.370%	3/15/30	8,405		8,779
	New York State Urban Development Corp.	3.900%	3/15/33	26,990		29,150
	North Texas Tollway Authority System Revenue	6.718%	1/1/49	25,191		39,282
	Ohio State University General Receipts Revenue	4.910%	6/1/40	12,300		15,293
	Ohio State University General Receipts Revenue	4.800%	6/1/11	20,195		24,822
16	Oregon School Boards Association GO	4.759%	6/30/28	1,000		1,114
	Port Authority of New York & New Jersey Revenue	6.040%	12/1/29	17,495		22,831
	Port Authority of New York & New Jersey Revenue	5.647%	11/1/40	10,250		13,601
	Port Authority of New York & New Jersey Revenue	5.647%	11/1/40	21,245		28,190
	Port Authority of New York & New Jersey Revenue	5.310%	8/1/46	5,000		5,573
	Port Authority of New York & New Jersey Revenue	4.926%	10/1/51	25,005		32,261
	Port Authority of New York & New Jersey Revenue	4.458%	10/1/62	35,940		43,437
	President & Fellows of Harvard College	3.150%	7/15/46	17,450		17,536
	Sacramento CA Municipal Utility District Revenue	6.156%	5/15/36	905		1,209
	Sales Tax Securitization Corp	4.637%	1/1/40	15,870		17,735
	Sales Tax Securitization Corp. Illinois Revenue	3.587%	1/1/43	38,995		38,453
	Sales Tax Securitization Corp. Illinois Revenue	4.787%	1/1/48	4,990		5,822
	San Antonio TX Electric & Gas Systems Revenue	5.985%	2/1/39	10,450		14,158
	San Antonio TX Electric & Gas Systems Revenue	4.427%	2/1/42	5,565		6,348
	San Diego County CA Regional Airport Authority Revenue	5.594%	7/1/43	800		896
	San Francisco CA City & County Public Utilities Commission Water Revenue	6.950%	11/1/50	1,400		2,154

88

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

				Face		Market
			Maturity	Amount		Value
		Coupon	Date	($000	)	($000	)
	Sonoma County CA Pension Obligation Revenue	6.000%	12/1/29	500		602
	University of California Regents Medical Center Revenue	6.548%	5/15/48	25,770		37,412
	University of California Regents Medical Center Revenue	6.583%	5/15/49	8,465		12,270
	University of California Revenue	4.601%	5/15/31	1,100		1,264
	University of California Revenue	5.770%	5/15/43	500		659
	University of California Revenue	3.931%	5/15/45	17,840		19,002
	University of California Revenue	4.858%	5/15/12	32,380		39,496
	University of California Revenue	4.767%	5/15/15	14,875		17,648
	University of North Carolina University System Revenue	3.327%	12/1/36	9,715		10,401
	University of Texas System Revenue Financing System Revenue	5.262%	7/1/39	11,500		15,033
	University of Texas System Revenue Financing System Revenue	4.794%	8/15/46	8,915		10,874
	Washington GO	5.481%	8/1/39	900		1,152
	Wisconsin Annual Appropriation Revenue	3.954%	5/1/36	3,500		3,759
14	Wisconsin GO	5.700%	5/1/26	2,115		2,407
Total Taxable Municipal Bonds (Cost $1,486,653)						1,847,383
				Shares
Temporary Cash Investments (5.8%)
Money Market Fund (3.5%)
17	Vanguard Market Liquidity Fund	2.386%		6,681,821		668,249

				Face
				Amount
				($000	)
Repurchase Agreements (2.3%)
	Bank of America Securities, LLC(Dated 7/31/19, Repurchase Value $33,502,000, collateralized by Government National Mortgage Assn. 3.500%, 5/20/49, with a value of $34,170,000)	2.560%	8/1/19	33,500		33,500
	Barclays Capital Inc.(Dated 7/31/19, Repurchase Value $85,406,000, collateralized by U.S. Treasury Note/Bond 3.375%, 11/15/48, with a value of $87,108,000)	2.530%	8/1/19	85,400		85,400
	Citigroup Global Markets Inc.(Dated 7/31/19, Repurchase Value $94,307,000, collateralized by U.S. Treasury Note/Bond 0.750%-3.125%, 8/15/19-5/15/48, with a value of $96,186,000)	2.520%	8/1/19	94,300		94,300
	RBC Capital Markets LLC(Dated 7/31/19, Repurchase Value $71,605,000, collateralized by Federal Home Loan Mortgage Corp. 3.000%-4.500%, 11/1/46-6/1/49, and Federal National Mortgage Assn. 3.500%-4.500%, 11/1/25-1/1/57, with a value of $73,032,000)	2.540%	8/1/19	71,600		71,600
	Wells Fargo & Co.(Dated 7/31/19, Repurchase Value $150,711,000, collateralized by Federal Home Loan Mortgage Corp. 3.000%-5.000%, 4/1/32-10/1/48, and Federal National Mortgage Assn. 1.870%-5.500%, 7/1/21-9/1/57, with a value of $153,714,000)	2.540%	8/1/19	150,700		150,700
						435,500
Total Temporary Cash Investments (Cost $1,103,720)						1,103,749

89

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

	Counterparty	Expiration Date	Exercise Rate	Notional Amount on Underlying Swap ($000)	Market Value ($000)
Options Purchased (0.0%)
Over-the-Counter Swaptions (0.0%)
Call Swaptions
10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.941% Semiannually	BNPSW	10/2/19	1.941%	1,800	15
10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.916% Semiannually	GSCM	10/3/19	1.916%	4,500	34
10-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 2.035% Semiannually	JPMC	10/17/19	2.035%	1,800	26
5-Year Interest Rate Swap, Pays 3M USD LIBOR Quarterly, Receives 1.857% Semiannually	DBAG	6/21/21	1.857%	3,600	62
					137
Put Swaptions
1-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 2.260% Semiannually	CITNA	8/23/19	2.260%	17,590	1
10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.941% Semiannually	BNPSW	10/2/19	1.941%	1,800	16
10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.916% Semiannually	GSCM	10/3/19	1.916%	4,500	47
10-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 2.035% Semiannually	JPMC	10/17/19	2.035%	1,800	11
5-Year Interest Rate Swap, Receives 3M USD LIBOR Quarterly, Pays 1.857% Semiannually	DBAG	6/21/21	1.857%	3,600	56
5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	BARC	8/21/19	0.600%	3,690	2
5-Year CDX-NA-IG-S32-V1, Credit Protection Sold, Receives 1.000% Quarterly	JPMC	9/18/19	0.700%	7,440	4
					137
Total Options Purchased (Cost $348)					274
Total Investments (100.7%) (Cost $16,963,504)					19,071,918
Other Assets and Liabilities—Net (-0.7%)					(124,606)
Net Assets (100%)					18,947,312

1Securities with a value of $1,027,000 have been segregated as collateral for open forward currency contracts and over-the-counter swap contracts.

2Securities with a value of $77,202,000 have been segregated as initial margin for open centrally cleared swap contracts.

3Securities with a value of $20,357,000 have been segregated as initial margin for open futures contracts.

4The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.

5The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.

6Includes securities purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of July 31, 2019.

7Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.

8Inverse interest-only security.

9Interest-only security.

10Face amount denominated in British pounds.

11Face amount denominated in euro.

12Security 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 July 31, 2019, the aggregate value of these securities was $779,428,000, representing 4.1% of net assets.

13Face amount denominated in Mexican pesos.

14Scheduled principal and interest payments are guaranteed by AGM (Assured Guaranty Municipal Corporation).

15Scheduled principal and interest payments are guaranteed by National Public Finance Guarantee Corp.

16Scheduled principal and interest payments are guaranteed by AMBAC (Ambac Assurance Corporation).

90

Vanguard® Long-Term Investment-Grade Fund

Schedule of Investments

July 31, 2019

17Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

BARC—Barclays Bank plc.

BNPSW—BNP Paribas.

CITNA—Citibank N.A.

DBAG—Deutsche Bank AG.

GO—General Obligation Bond.

GSCM—Goldman Sachs Bank USA.

JPMC—JP Morgan Chase Bank.

LIBOR—London Interbank Offered Rate.

REMICS—Real Estate Mortgage Investment Conduits.

TBA—To Be Announced.

91

© 2019 The Vanguard Group, Inc.

All rights reserved.

Vanguard Marketing Corporation, Distributor.

SNA392 092019

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

Item 11: Controls and Procedures.

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

(b) Internal Control Over Financial Reporting. There were no significant changes in Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 13: Exhibits.

(a)Certifications.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	VANGUARD FIXED INCOME SECURITIES FUNDS
BY:	/s/ MORTIMER J. BUCKLEY*
	MORTIMER J. BUCKLEY
	CHIEF EXECUTIVE OFFICER

Date:  September 19, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	VANGUARD FIXED INCOME SECURITIES FUNDS
BY:	/s/ MORTIMER J. BUCKLEY*
	MORTIMER J. BUCKLEY
	CHIEF EXECUTIVE OFFICER
Date:  September 19, 2019
	VANGUARD FIXED INCOME SECURITIES FUNDS
BY:	/s/ THOMAS J. HIGGINS*
	THOMAS J. HIGGINS
	CHIEF FINANCIAL OFFICER
Date: September 19, 2019

* By: /s/ Anne E. Robinson

Anne E. Robinson, pursuant to a Power of Attorney filed on January 18, 2018; see file Number 33-32216, Incorporated by Reference.