NPORT-EX 2 vg_financialsindex.htm
Vanguard® Financials Index Fund
Schedule of Investments (unaudited)
As of November 30, 2024
The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.
    Shares Market
Value
($000)
Common Stocks (98.2%)
Banks (27.4%)
  JPMorgan Chase & Co.  4,457,323  1,113,083
  Bank of America Corp. 10,942,697    519,888
  Wells Fargo & Co.  5,333,738    406,271
  Citigroup Inc.  2,988,179    211,772
  PNC Financial Services Group Inc.    623,562    133,891
  US Bancorp  2,447,101    130,406
  Truist Financial Corp.  2,102,119    100,229
  M&T Bank Corp.    262,660     57,783
  Fifth Third Bancorp  1,058,878     50,890
  Huntington Bancshares Inc.  2,272,124     40,921
  Regions Financial Corp.  1,431,634     39,026
  First Citizens BancShares Inc. Class A     15,801     36,263
  Citizens Financial Group Inc.    701,587     33,774
  KeyCorp  1,494,165     29,106
  East West Bancorp Inc.    216,833     23,782
  First Horizon Corp.    840,963     17,770
  Webster Financial Corp.    268,282     16,574
  Pinnacle Financial Partners Inc.    120,578     15,327
  Western Alliance Bancorp    163,597     15,314
  Comerica Inc.    207,610     15,000
  Wintrust Financial Corp.    103,876     14,336
  Commerce Bancshares Inc.    191,863     14,150
  Zions Bancorp NA    231,204     13,993
  Cullen/Frost Bankers Inc.     95,145     13,379
  SouthState Corp.    119,318     13,207
  Synovus Financial Corp.    225,358     12,861
  Prosperity Bancshares Inc.    148,972     12,473
  Old National Bancorp    499,168     11,561
  Popular Inc.    112,821     11,210
  Cadence Bank    285,360     10,898
  Glacier Bancorp Inc.    177,486     10,275
  Columbia Banking System Inc.    327,040     10,142
  FNB Corp.    562,808      9,652
  Home BancShares Inc.    298,595      9,483
  UMB Financial Corp.     72,370      9,082
  United Bankshares Inc.    210,882      8,914
  Bank OZK    167,596      8,375
  Hancock Whitney Corp.    135,530      8,048
  First Financial Bankshares Inc.    190,039      7,921
  ServisFirst Bancshares Inc.     81,057      7,764
  Valley National Bancorp    678,753      7,222
  Ameris Bancorp    102,290      7,189
* Axos Financial Inc.     84,340      6,988
* Texas Capital Bancshares Inc.     72,494      6,412
  International Bancshares Corp.     87,610      6,407
  Associated Banc-Corp.    236,623      6,316
  United Community Banks Inc.    185,579      6,274
  Fulton Financial Corp.    285,801      6,168
  Atlantic Union Bankshares Corp.    139,611      5,924
  Flagstar Financial Inc.    487,410      5,834
  Community Financial System Inc.     82,814      5,733
  Eastern Bankshares Inc.    302,415      5,637
  Cathay General Bancorp    107,755      5,604
  First Hawaiian Inc.    200,403      5,533
  WSFS Financial Corp.     91,866      5,514
  First BanCorp (XNYS)    254,699      5,267
  First Interstate BancSystem Inc. Class A    148,674      5,199
  CVB Financial Corp.    218,448      5,116
  Bank of Hawaii Corp.     62,352      4,925
  BankUnited Inc.    116,662      4,908
Vanguard® Financials Index Fund
    Shares Market
Value
($000)
  Park National Corp.     25,202      4,797
  Independent Bank Corp. (XNGS)     65,880      4,769
  Simmons First National Corp. Class A    194,563      4,759
  WaFd Inc.    128,064      4,685
  Heartland Financial USA Inc.     67,329      4,549
  First Financial Bancorp    149,154      4,405
  Towne Bank    117,109      4,290
* Bancorp Inc.     73,057      4,269
  Pacific Premier Bancorp Inc.    150,165      4,265
  BancFirst Corp.     33,510      4,232
  BOK Financial Corp.     35,080      4,170
  Provident Financial Services Inc.    192,720      4,070
  Banner Corp.     53,583      3,997
  First Merchants Corp.     90,963      3,980
  Seacoast Banking Corp. of Florida    132,615      3,973
  Independent Bank Group Inc.     58,029      3,883
  Banc of California Inc.    222,385      3,832
  Renasant Corp.    101,042      3,801
* Triumph Financial Inc.     34,619      3,707
  NBT Bancorp Inc.     73,600      3,689
  Trustmark Corp.     90,925      3,556
  Enterprise Financial Services Corp.     58,441      3,541
  Pathward Financial Inc.     39,643      3,325
  FB Financial Corp.     58,567      3,306
  OFG Bancorp     72,777      3,306
  Stock Yards Bancorp Inc.     43,332      3,298
  WesBanco Inc.     92,913      3,284
  First Commonwealth Financial Corp.    161,572      3,042
  City Holding Co.     23,151      3,040
  First Bancorp/Southern Pines NC     64,069      3,030
  Lakeland Financial Corp.     40,336      2,963
  Northwest Bancshares Inc.    198,719      2,917
  National Bank Holdings Corp. Class A     58,771      2,806
  Live Oak Bancshares Inc.     56,383      2,673
* Customers Bancorp Inc.     47,040      2,655
  Sandy Spring Bancorp Inc.     70,025      2,639
  Veritex Holdings Inc.     85,003      2,585
  Hope Bancorp Inc.    187,982      2,560
  S&T Bancorp Inc.     58,918      2,521
  Stellar Bancorp Inc.     80,490      2,496
  QCR Holdings Inc.     26,329      2,425
  Nicolet Bankshares Inc.     21,763      2,424
  Hilltop Holdings Inc.     76,178      2,411
  Westamerica BanCorp     42,096      2,409
  TriCo Bancshares     49,577      2,397
  First Busey Corp.     88,731      2,368
  Dime Community Bancshares Inc.     64,825      2,326
  German American Bancorp Inc.     46,204      2,078
  Berkshire Hills Bancorp Inc.     67,119      2,046
  Peoples Bancorp Inc.     55,452      1,945
  OceanFirst Financial Corp.     92,827      1,920
  Preferred Bank     20,257      1,911
  1st Source Corp.     28,962      1,879
  First Bancshares Inc.     47,420      1,761
  Brookline Bancorp Inc.    139,604      1,758
  Bank First Corp.     15,241      1,629
  ConnectOne Bancorp Inc.     58,278      1,603
  Origin Bancorp Inc.     45,821      1,574
  Premier Financial Corp.     56,008      1,552
  Southside Bancshares Inc.     44,060      1,547
  Tompkins Financial Corp.     19,452      1,484
  Univest Financial Corp.     45,958      1,460
  Heritage Financial Corp.     55,093      1,457
  Burke & Herbert Financial Services Corp.     20,975      1,453
  Community Trust Bancorp Inc.     23,954      1,413
  Capitol Federal Financial Inc.    202,437      1,352
  Central Pacific Financial Corp.     42,345      1,352
  Eagle Bancorp Inc.     45,562      1,338
  First Mid Bancshares Inc.     31,595      1,327
* Coastal Financial Corp.     17,092      1,308
Vanguard® Financials Index Fund
    Shares Market
Value
($000)
  Byline Bancorp Inc.     41,585      1,307
  Amerant Bancorp Inc.     52,248      1,299
  Old Second Bancorp Inc.     68,890      1,281
  Hanmi Financial Corp.     47,764      1,263
  Horizon Bancorp Inc.     68,103      1,246
  Independent Bank Corp.     32,724      1,231
  Mercantile Bank Corp.     24,357      1,219
  First Community Bankshares Inc.     26,248      1,212
* CrossFirst Bankshares Inc.     68,244      1,181
* NB Bancorp Inc.     57,739      1,163
  TrustCo Bank Corp. NY     29,827      1,111
  Camden National Corp.     22,985      1,083
  Business First Bancshares Inc.     37,720      1,075
  Equity Bancshares Inc. Class A     21,785      1,045
  Southern Missouri Bancorp Inc.     15,551      1,021
  Heritage Commerce Corp.     95,429      1,013
* Metropolitan Bank Holding Corp.     15,299        994
  Washington Trust Bancorp Inc.     26,640        989
  Great Southern Bancorp Inc.     15,275        979
  Amalgamated Financial Corp.     26,408        941
  Farmers National Banc Corp.     58,942        922
  CNB Financial Corp.     32,936        919
  Peapack-Gladstone Financial Corp.     25,147        909
  Capital City Bank Group Inc.     22,576        889
  Midland States Bancorp Inc.     33,125        889
  Arrow Financial Corp.     26,792        884
  First Foundation Inc.    109,514        871
  Bar Harbor Bankshares     23,908        860
  First Financial Corp.     17,616        860
  HomeTrust Bancshares Inc.     23,061        855
  SmartFinancial Inc.     22,593        819
  HarborOne Bancorp Inc.     60,761        783
  Northfield Bancorp Inc.     56,334        754
  South Plains Financial Inc.     19,389        754
  Flushing Financial Corp.     41,049        728
  Kearny Financial Corp.     90,935        720
* Carter Bankshares Inc.     37,460        700
1 Hingham Institution for Savings      2,379        674
  Mid Penn Bancorp Inc.     20,385        653
  Bank of Marin Bancorp     22,843        578
                 3,579,210
Capital Markets (24.3%)
  Goldman Sachs Group Inc.    494,923    301,195
  S&P Global Inc.    501,622    262,103
  Morgan Stanley  1,901,462    250,251
  Blackrock Inc.    232,116    237,408
  Blackstone Inc.  1,128,490    215,643
  Charles Schwab Corp.  2,508,003    207,562
  KKR & Co. Inc.    972,965    158,467
  Intercontinental Exchange Inc.    899,328    144,756
  CME Group Inc.    563,915    134,212
  Moody's Corp.    256,817    128,403
  Bank of New York Mellon Corp.  1,156,761     94,704
* Coinbase Global Inc. Class A    302,115     89,486
  Ameriprise Financial Inc.    153,955     88,366
  MSCI Inc.    123,065     75,024
  Nasdaq Inc.    675,868     56,090
  Ares Management Corp. Class A    295,983     52,309
  Raymond James Financial Inc.    306,086     51,814
  State Street Corp.    460,253     45,340
  T Rowe Price Group Inc.    348,276     43,131
  LPL Financial Holdings Inc.    116,974     38,034
  Cboe Global Markets Inc.    163,681     35,331
  Northern Trust Corp.    315,436     35,064
  Interactive Brokers Group Inc. Class A    170,248     32,533
* Robinhood Markets Inc. Class A    835,602     31,368
  FactSet Research Systems Inc.     59,625     29,256
  Tradeweb Markets Inc. Class A    182,298     24,701
  Blue Owl Capital Inc.    833,895     19,788
Vanguard® Financials Index Fund
    Shares Market
Value
($000)
  Carlyle Group Inc.    362,530     19,297
  Jefferies Financial Group Inc.    241,867     19,141
  Stifel Financial Corp.    161,819     18,739
  Evercore Inc. Class A     56,982     17,545
  Houlihan Lokey Inc.     83,426     15,775
  Morningstar Inc.     43,860     15,533
  MarketAxess Holdings Inc.     59,286     15,337
  SEI Investments Co.    172,623     14,264
  Hamilton Lane Inc. Class A     60,202     11,583
  Franklin Resources Inc.    452,804     10,306
  Invesco Ltd.    528,126      9,554
  Piper Sandler Cos.     27,809      9,538
  Janus Henderson Group plc    199,215      9,020
  Affiliated Managers Group Inc.     46,755      8,768
  Moelis & Co. Class A    110,621      8,516
  TPG Inc.    120,491      8,430
  Lazard Inc.    141,585      8,222
  StepStone Group Inc. Class A    100,950      6,652
  PJT Partners Inc. Class A     35,022      5,861
  BGC Group Inc. Class A    560,480      5,459
  Artisan Partners Asset Management Inc. Class A    108,513      5,294
  Federated Hermes Inc.    121,784      5,206
  Virtu Financial Inc. Class A    129,395      4,828
* StoneX Group Inc.     44,936      4,663
  Victory Capital Holdings Inc. Class A     66,231      4,602
  Cohen & Steers Inc.     43,858      4,590
  DigitalBridge Group Inc.    271,250      3,553
  Virtus Investment Partners Inc.     11,044      2,728
* Donnelley Financial Solutions Inc.     43,896      2,645
  WisdomTree Inc.    178,863      2,137
  Perella Weinberg Partners     79,906      2,051
  Brightsphere Investment Group Inc.     47,176      1,471
* Open Lending Corp.    158,370      1,010
  P10 Inc. Class A     63,720        898
  Diamond Hill Investment Group Inc.      4,280        708
  Oppenheimer Holdings Inc. Class A      9,461        584
  Bridge Investment Group Holdings Inc. Class A     58,805        582
  Associated Capital Group Inc. Class A      4,649        169
1 B Riley Financial Inc.     27,130        159
                 3,167,757
Consumer Finance (4.7%)
  American Express Co.    890,903    271,440
  Capital One Financial Corp.    597,688    114,762
  Discover Financial Services    392,924     71,681
  Synchrony Financial    620,955     41,927
* SoFi Technologies Inc.  1,588,034     26,060
  Ally Financial Inc.    432,398     17,287
  OneMain Holdings Inc.    186,765     10,711
* Upstart Holdings Inc.    119,108      9,385
  SLM Corp.    304,498      8,337
  FirstCash Holdings Inc.     63,022      6,861
* Credit Acceptance Corp.     10,417      5,185
  Bread Financial Holdings Inc.     77,053      4,533
* Enova International Inc.     41,527      4,382
  PROG Holdings Inc.     65,463      3,185
* LendingClub Corp.    178,219      2,966
  Nelnet Inc. Class A     22,358      2,435
  Navient Corp.    130,118      2,027
* Encore Capital Group Inc.     36,558      1,798
* PRA Group Inc.     57,739      1,224
* EZCorp. Inc. Class A     81,340      1,041
* Moneylion Inc.      9,993        916
* NerdWallet Inc. Class A     60,731        850
* LendingTree Inc.     17,919        792
* Green Dot Corp. Class A     73,323        753
* World Acceptance Corp.      5,360        648
                   611,186
Vanguard® Financials Index Fund
    Shares Market
Value
($000)
Financial Services (24.8%)
* Berkshire Hathaway Inc. Class B  2,075,928  1,002,715
  Mastercard Inc. Class A  1,292,512    688,831
  Visa Inc. Class A  1,867,009    588,257
* Fiserv Inc.    901,963    199,298
* PayPal Holdings Inc.  1,521,644    132,033
  Apollo Global Management Inc.    624,742    109,349
* Block Inc. (XNYS)    868,847     76,936
  Fidelity National Information Services Inc.    853,677     72,819
  Global Payments Inc.    398,177     47,367
* Corpay Inc.    103,696     39,527
* Toast Inc. Class A    613,011     26,691
* Affirm Holdings Inc.    376,632     26,368
  Equitable Holdings Inc.    495,963     23,920
  Jack Henry & Associates Inc.    114,940     20,250
  Corebridge Financial Inc.    416,956     13,497
  Voya Financial Inc.    154,223     12,801
* WEX Inc.     64,317     12,134
  Jackson Financial Inc. Class A    117,777     11,800
  MGIC Investment Corp.    405,465     10,648
* Shift4 Payments Inc. Class A     91,834     10,476
* Mr. Cooper Group Inc.    100,821      9,948
  Essent Group Ltd.    167,056      9,653
  Radian Group Inc.    236,542      8,466
* Euronet Worldwide Inc.     66,623      7,004
  Western Union Co.    525,892      5,790
  Walker & Dunlop Inc.     52,464      5,780
  HA Sustainable Infrastructure Capital Inc.    182,634      5,727
* Payoneer Global Inc.    478,264      5,218
  PennyMac Financial Services Inc.     48,253      5,169
* NMI Holdings Inc.    119,293      4,771
* Remitly Global Inc.    228,880      4,706
* Flywire Corp.    175,383      3,983
  EVERTEC Inc.     98,408      3,543
* NCR Atleos Corp.    107,083      3,513
  Federal Agricultural Mortgage Corp. Class C     14,683      3,134
* AvidXchange Holdings Inc.    268,416      3,071
* Rocket Cos. Inc. Class A    198,169      2,879
  Compass Diversified Holdings    106,419      2,522
* Marqeta Inc. Class A    620,911      2,409
  Cannae Holdings Inc.     88,222      1,914
* Sezzle Inc.      4,350      1,845
  Merchants Bancorp     32,464      1,340
* Paymentus Holdings Inc. Class A     31,104      1,176
* Repay Holdings Corp.    126,314      1,021
  Cass Information Systems Inc.     20,455        918
  UWM Holdings Corp.    140,711        916
* International Money Express Inc.     43,283        912
* I3 Verticals Inc. Class A     36,295        900
* Cantaloupe Inc.     91,117        827
                 3,234,772
Insurance (16.3%)
  Progressive Corp.    917,485    246,693
  Marsh & McLennan Cos. Inc.    770,298    179,657
  Chubb Ltd.    600,757    173,457
  Aon plc Class A (XNYS)    306,291    119,925
  Arthur J Gallagher & Co.    343,389    107,220
  Aflac Inc.    833,911     95,066
  Travelers Cos. Inc.    357,314     95,060
  Allstate Corp.    413,902     85,839
  MetLife Inc.    934,169     82,422
  American International Group Inc.  1,007,864     77,485
  Prudential Financial Inc.    560,703     72,561
  Arch Capital Group Ltd.    589,037     59,328
  Hartford Financial Services Group Inc.    458,553     56,544
  Willis Towers Watson plc    158,913     51,170
  Brown & Brown Inc.    380,914     43,081
  Cincinnati Financial Corp.    244,457     39,072
* Markel Group Inc.     20,332     36,250
Vanguard® Financials Index Fund
    Shares Market
Value
($000)
  Principal Financial Group Inc.    362,528     31,573
  W R Berkley Corp.    476,340     30,748
  Everest Group Ltd.     67,714     26,243
  Fidelity National Financial Inc.    409,391     25,951
  Loews Corp.    292,601     25,377
  Reinsurance Group of America Inc.    102,982     23,521
  RenaissanceRe Holdings Ltd.     81,603     23,351
  Unum Group    276,969     21,299
  Assurant Inc.     81,297     18,463
  Kinsale Capital Group Inc.     34,566     17,575
  Erie Indemnity Co. Class A     39,742     17,509
  American Financial Group Inc.    111,488     16,373
  Primerica Inc.     53,108     16,078
  Globe Life Inc.    140,585     15,639
  Old Republic International Corp.    385,506     15,023
  Ryan Specialty Holdings Inc.    159,642     12,037
  Axis Capital Holdings Ltd.    125,156     11,644
  RLI Corp.     64,341     11,318
  First American Financial Corp.    161,151     11,305
  Selective Insurance Group Inc.     94,923      9,691
  Lincoln National Corp.    265,716      9,443
  Hanover Insurance Group Inc.     56,072      9,252
  White Mountains Insurance Group Ltd.      4,063      8,167
  Assured Guaranty Ltd.     78,477      7,320
  Kemper Corp.    100,429      7,180
  CNO Financial Group Inc.    165,670      6,610
* Enstar Group Ltd.     19,047      6,185
* Genworth Financial Inc.    669,913      5,225
* Baldwin Insurance Group Inc.    103,899      5,087
* Brighthouse Financial Inc.     95,316      4,982
* Goosehead Insurance Inc. Class A     35,996      4,540
* Oscar Health Inc. Class A    260,970      4,523
* Palomar Holdings Inc.     40,962      4,436
* Lemonade Inc.     84,453      4,375
  Mercury General Corp.     43,439      3,430
  Stewart Information Services Corp.     42,920      3,223
* Skyward Specialty Insurance Group Inc.     52,969      2,866
* Trupanion Inc.     52,219      2,784
  Horace Mann Educators Corp.     64,165      2,687
* SiriusPoint Ltd.    158,458      2,443
  Employers Holdings Inc.     40,010      2,135
  Safety Insurance Group Inc.     23,328      2,002
  AMERISAFE Inc.     30,236      1,784
  HCI Group Inc.     12,631      1,539
* ProAssurance Corp.     76,449      1,278
* Root Inc. Class A     12,440      1,242
  United Fire Group Inc.     33,331      1,020
  Universal Insurance Holdings Inc.     43,046        974
* Ambac Financial Group Inc.     70,831        909
  Tiptree Inc.     37,534        855
* Hippo Holdings Inc.     24,832        820
* Hamilton Insurance Group Ltd. Class B     40,602        775
* Bowhead Specialty Holdings Inc.     20,361        750
* Greenlight Capital Re Ltd. Class A     43,926        656
  Donegal Group Inc. Class A     25,672        427
  James River Group Holdings Ltd.     58,823        276
                 2,123,748
Mortgage Real Estate Investment Trusts (REITs) (0.7%)
  Annaly Capital Management Inc.    841,971     16,781
  AGNC Investment Corp.  1,222,495     11,809
  Starwood Property Trust Inc.    495,944     10,102
  Rithm Capital Corp.    811,838      9,133
  Blackstone Mortgage Trust Inc. Class A    256,854      4,937
1 Arbor Realty Trust Inc.    294,252      4,317
  Ladder Capital Corp.    178,543      2,118
  Apollo Commercial Real Estate Finance Inc.    210,195      1,944
  Ready Capital Corp.    258,113      1,902
  Two Harbors Investment Corp.    161,786      1,901
  Chimera Investment Corp.    125,735      1,866
Vanguard® Financials Index Fund
    Shares Market
Value
($000)
  PennyMac Mortgage Investment Trust    134,650      1,830
  MFA Financial Inc. REIT    159,897      1,777
  Franklin BSP Realty Trust Inc. REIT    129,851      1,698
  Ellington Financial Inc.    133,208      1,646
  Redwood Trust Inc.    206,052      1,475
  Dynex Capital Inc.    116,953      1,468
  ARMOUR Residential REIT Inc.     77,346      1,463
  Brightspire Capital Inc.    206,143      1,307
  Claros Mortgage Trust Inc.    174,826      1,187
  KKR Real Estate Finance Trust Inc.     92,184      1,072
  New York Mortgage Trust Inc.    143,429        881
  Orchid Island Capital Inc.    107,907        841
  TPG RE Finance Trust Inc.     90,175        823
  Invesco Mortgage Capital Inc. REIT     92,772        775
  Ares Commercial Real Estate Corp.     77,118        557
                    85,610
Total Common Stocks (Cost $8,842,425) 12,802,283
Temporary Cash Investments (1.6%)
Money Market Fund (1.6%)
2,3 Vanguard Market Liquidity Fund, 4.651% (Cost $211,773)  2,118,095           211,788
Total Investments (99.8%) (Cost $9,054,198) 13,014,071
Other Assets and Liabilities—Net (0.2%) 25,862
Net Assets (100.0%) 13,039,933
Cost is in $000.
* Non-income-producing security.
1 Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $3,019,000.
2 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
3 Collateral of $3,275,000 was received for securities on loan.
REIT—Real Estate Investment Trust.
  
Derivative Financial Instruments Outstanding as of Period End
Over-the-Counter Total Return Swaps
Reference Entity Termination
Date 		Counterparty Notional
Amount
($000) 		Floating
Interest Rate
Received
(Paid)1
(%) 		Value and
Unrealized
Appreciation
($000) 		Value and
Unrealized
(Depreciation)
($000)
Visa Inc. Class A 1/31/25 CITNA 236,310 (4.705) 412 —
1 Based on Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/paid monthly.
  CITNA—Citibank, N.A.
At November 30, 2024, the counterparties had deposited in segregated accounts securities with a value of $19,028,000 in connection with open over-the-counter swap contracts.
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
B. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes 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.
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
Vanguard® Financials Index Fund
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 Schedule of Investments. 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.
Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded as an asset (liability) and as unrealized appreciation (depreciation) until periodic payments are made or the termination of the swap, at which time realized gain (loss) is recorded.
C. Various inputs may be used to determine the value of the fund’s investments and derivatives. 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 and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund’s investments and derivatives as of November 30, 2024, based on the inputs used to value them:
  Level 1
($000) 		Level 2
($000) 		Level 3
($000) 		Total
($000)
Investments         
Assets        
Common Stocks 12,802,283 — — 12,802,283
Temporary Cash Investments 211,788 — — 211,788
Total 13,014,071 — — 13,014,071
Derivative Financial Instruments         
Assets        
Swap Contracts — 412 — 412