Annual Report | December 31, 2021

Vanguard Tax-Managed Funds^®

Vanguard Tax-Managed Balanced Fund

Vanguard Tax-Managed Capital Appreciation Fund

Vanguard Tax-Managed Small-Cap Fund

Contents

Your Fund’s Performance at a Glance	1
About Your Fund's Expenses	2
Tax-Managed Balanced Fund	4
Tax-Managed Capital Appreciation Fund	100
Tax-Managed Small-Cap Fund	123

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

Table of Contents

Your Fund’s Performance at a Glance

•	For the 12 months ended December 31, 2021, returns for the Vanguard Tax-Managed Funds ranged from 13.10% for Vanguard Tax-Managed Balanced Fund to 27.11% for Institutional Shares of Vanguard Tax-Managed Small Cap Fund.
•	The U.S. economy continued to heal over the 12 months. Vaccination programs started rolling out shortly after the period began, helping some of the hardest-hit sectors such as hospitality, leisure, and travel, and more workers returned to the labor force. U.S. stocks performed strongly even with the spread of new COVID-19 variants, a surge in inflation, and Federal Reserve monetary policy turning less accommodative.
•	Growth stocks outperformed value stocks for the 12 months, while large-capitalization stocks led mid- and small-caps. The broad U.S. stock market, as measured by the CRSP US Total Market Index, returned 25.72%.
•	The municipal bond market, as measured by the Bloomberg 1–15 Year Municipal Bond Index, returned 0.86%. Municipal bonds make up about half the Tax-Managed Balanced Fund’s assets.

Market Barometer

	Average Annual Total Returns Periods Ended December 31, 2021
	One Year	Three Years	Five Years
Stocks
Russell 1000 Index (Large-caps)	26.45%	26.21%	18.43%
Russell 2000 Index (Small-caps)	14.82	20.02	12.02
Russell 3000 Index (Broad U.S. market)	25.66	25.79	17.97
FTSE All-World ex US Index (International)	8.36	13.66	9.89
Bonds
Bloomberg U.S. Aggregate Bond Index (Broad taxable market)	-1.54%	4.79%	3.57%
Bloomberg Municipal Bond Index (Broad tax-exempt market)	1.52	4.73	4.17
FTSE Three-Month U.S. Treasury Bill Index	0.05	0.95	1.11
CPI
Consumer Price Index	7.04%	3.53%	2.92%

Table of Contents

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.

Table of Contents

Six Months Ended December 31, 2021
	Beginning Account Value 6/30/2021	Ending Account Value 12/31/2021	Expenses Paid During Period
Based on Actual Fund Return
Tax-Managed Balanced Fund	$1,000.00	$1,051.50	$0.47
Tax-Managed Capital Appreciation Fund
Admiral™ Shares	$1,000.00	$1,102.60	$0.48
Institutional Shares	1,000.00	1,102.80	0.32
Tax-Managed Small-Cap Fund
Admiral Shares	$1,000.00	$1,028.50	$0.46
Institutional Shares	1,000.00	1,028.70	0.31
Based on Hypothetical 5% Yearly Return
Tax-Managed Balanced Fund	$1,000.00	$1,024.75	$0.46
Tax-Managed Capital Appreciation Fund
Admiral Shares	$1,000.00	$1,024.75	$0.46
Institutional Shares	1,000.00	1,024.90	0.31
Tax-Managed Small-Cap Fund
Admiral Shares	$1,000.00	$1,024.75	$0.46
Institutional Shares	1,000.00	1,024.90	0.31

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 Tax-Managed Balanced Fund, 0.09%; for the Tax-Managed Capital Appreciation Fund, 0.09% for Admiral Shares and 0.06% for Institutional Shares; and for the Tax-Managed Small-Cap Fund, 0.09% for Admiral Shares and 0.06% for Institutional 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 (184/365).

Table of Contents

Tax-Managed Balanced Fund

Performance Summary

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.

Cumulative Performance: December 31, 2011, Through December 31, 2021

Initial Investment of $10,000

		Average Annual Total Returns Periods Ended December 31, 2021
	One Year	Five Years	Ten Years	Final Value of a $10,000 Investment
Tax-Managed Balanced Fund	13.10%	10.92%	9.75%	$25,344
Tax-Managed Balanced Composite Index	13.19	11.25	9.96	25,852
Bloomberg Municipal Bond Index	1.52	4.17	3.72	14,414
Dow Jones U.S. Total Stock Market Float Adjusted Index	25.66	17.92	16.24	45,050

Tax-Managed Balanced Composite Index: 50% Russell 1000 Index and 50% Bloomberg 1–15 Year Municipal Bond Index.

See Financial Highlights for dividend and capital gains information.

Table of Contents

Tax-Managed Balanced Fund

Fund Allocation

As of December 31, 2021

Investment Exposure
Basic Materials	0.6%
Consumer Discretionary	7.9
Consumer Staples	2.4
Energy	1.3
Financials	5.0
Health Care	5.9
Industrials	6.3
Other	0.6
Real Estate	1.5
Technology	14.2
Telecommunications	1.3
Utilities	1.3
Tax-Exempt Municipal Bonds	51.7

The table reflects the fund’s investments, except for short-term investments and derivatives. Sector categories are based on the Industry Classification Benchmark (“ICB”), except for the “Other” category (if applicable), which includes securities that have not been provided an ICB classification as of the effective reporting period.

The Industry Classification Benchmark (“ICB”) is owned by FTSE. FTSE does not accept any liability to any person for any loss or damage arising out of any error or omission in the ICB.

Table of Contents

Tax-Managed Balanced Fund

Financial Statements

Schedule of Investments

As of December 31, 2021

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

		Shares	Market Value• ($000)
Common Stocks (48.1%)
Basic Materials (0.6%)
	Ecolab Inc.	30,866	7,241
	Freeport-McMoRan Inc.	141,389	5,900
	Air Products and Chemicals Inc.	19,099	5,811
	Newmont Corp.	79,841	4,952
	Alcoa Corp.	70,034	4,173
	Element Solutions Inc.	128,571	3,122
	Celanese Corp.	14,628	2,458
	Albemarle Corp.	10,400	2,431
	Dow Inc.	36,222	2,055
	Fastenal Co.	21,246	1,361
	Nucor Corp.	11,200	1,278
	International Flavors & Fragrances Inc.	8,185	1,233
	CF Industries Holdings Inc.	16,859	1,193
	Reliance Steel & Aluminum Co.	6,900	1,119
	FMC Corp.	9,098	1,000
	Avery Dennison Corp.	4,600	996
	Huntsman Corp.	27,900	973
	Westlake Chemical Corp.	9,894	961
	Eastman Chemical Co.	7,819	945
	Scotts Miracle-Gro Co.	4,442	715
	Mosaic Co.	18,068	710
	Ashland Global Holdings Inc.	6,198	667
	Valvoline Inc.	17,015	635
	LyondellBasell Industries NV Class A	5,638	520
	Royal Gold Inc.	3,900	410
	Timken Co.	5,841	405
	NewMarket Corp.	890	305
	Steel Dynamics Inc.	4,100	255
			53,824
Consumer Discretionary (7.9%)
^*	Amazon.com Inc.	41,024	136,788
^*	Tesla Inc.	74,615	78,852
	Home Depot Inc.	104,969	43,563
^*	Walt Disney Co.	178,123	27,589

		Shares	Market Value• ($000)
	Costco Wholesale Corp.	46,842	26,592
^*	Netflix Inc.	42,251	25,454
	NIKE Inc. Class B	135,111	22,519
	Walmart Inc.	136,623	19,768
	Lowe's Cos. Inc.	76,412	19,751
	McDonald's Corp.	62,436	16,737
	Starbucks Corp.	113,970	13,331
	Estee Lauder Cos. Inc. Class A	33,569	12,427
	Target Corp.	41,325	9,564
^*	Booking Holdings Inc.	3,778	9,064
	TJX Cos. Inc.	106,628	8,095
^*	O'Reilly Automotive Inc.	9,503	6,711
^*	Lululemon Athletica Inc.	15,881	6,217
	Dollar General Corp.	25,991	6,129
^*	General Motors Co.	100,001	5,863
^*	Chipotle Mexican Grill Inc.	3,292	5,755
^*	AutoZone Inc.	2,594	5,438
^*	Copart Inc.	35,413	5,369
^*	Uber Technologies Inc.	118,604	4,973
^*	Aptiv plc	29,624	4,886
^*	Under Armour Inc. Class A	225,100	4,770
^*	Hilton Worldwide Holdings Inc.	30,445	4,749
	eBay Inc.	70,733	4,704
	Activision Blizzard Inc.	69,615	4,631
^*	Marriott International Inc. Class A	27,645	4,568
	Lennar Corp. Class A	39,160	4,549
	Yum! Brands Inc.	31,728	4,406
	Ford Motor Co.	198,400	4,121
	DR Horton Inc.	37,302	4,045
	Ross Stores Inc.	35,144	4,016
^*	Dollar Tree Inc.	27,452	3,858
^*	Capri Holdings Ltd.	59,100	3,836
^*	CarMax Inc.	26,265	3,421
^*	NVR Inc.	569	3,362
^*	Spotify Technology SA	13,409	3,138
	Electronic Arts Inc.	23,473	3,096
^*	Trade Desk Inc. Class A	32,690	2,996
	Tractor Supply Co.	12,514	2,986
^*	Southwest Airlines Co.	62,466	2,676

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Tax-Managed Balanced Fund

		Shares	Market Value• ($000)
^*	Live Nation Entertainment Inc.	22,245	2,663
	Advance Auto Parts Inc.	10,965	2,630
	MGM Resorts International	57,046	2,560
^*	Ulta Beauty Inc.	5,996	2,472
^*	Etsy Inc.	10,995	2,407
	Domino's Pizza Inc.	4,261	2,405
	Best Buy Co. Inc.	21,906	2,226
^*	Burlington Stores Inc.	7,603	2,216
	LKQ Corp.	36,460	2,189
	AMERCO	2,887	2,097
^*	Delta Air Lines Inc.	52,100	2,036
^*	Expedia Group Inc.	11,209	2,026
	ViacomCBS Inc. Class B	65,073	1,964
	VF Corp.	26,400	1,933
	Lear Corp.	10,522	1,925
^*	AutoNation Inc.	16,312	1,906
^*	Norwegian Cruise Line Holdings Ltd.	88,700	1,840
^*	Floor & Decor Holdings Inc. Class A	13,773	1,791
	Yum China Holdings Inc.	35,756	1,782
	Tempur Sealy International Inc.	37,140	1,747
^*	Wayfair Inc. Class A	9,168	1,742
	Toll Brothers Inc.	22,801	1,651
^*	United Airlines Holdings Inc.	37,444	1,639
^*	Under Armour Inc. Class C	89,592	1,616
^*	Chegg Inc.	51,200	1,572
	PVH Corp.	14,290	1,524
^*	JetBlue Airways Corp.	104,908	1,494
^*	Take-Two Interactive Software Inc.	8,365	1,487
	PulteGroup Inc.	25,300	1,446
	Service Corp. International	19,876	1,411
^*	Lyft Inc. Class A	32,900	1,406
	Sirius XM Holdings Inc.	219,780	1,396
	News Corp. Class A	62,267	1,389
	Gentex Corp.	39,660	1,382
^*	Liberty Media Corp.-Liberty Formula One Class C	21,777	1,377
^*	Skechers USA Inc. Class A	28,459	1,235
	Garmin Ltd.	8,970	1,221
	Williams-Sonoma Inc.	7,089	1,199
^*	Rivian Automotive Inc. Class A	11,497	1,192
^*	Discovery Inc. Class C	50,858	1,165
^*	American Airlines Group Inc.	61,900	1,112
^*	Carnival Corp.	54,600	1,099
^*	Five Below Inc.	5,244	1,085
^*	Penn National Gaming Inc.	20,700	1,073
	Thor Industries Inc.	9,533	989

		Shares	Market Value• ($000)
	Dick's Sporting Goods Inc.	8,512	979
^*	Carvana Co.	4,031	934
^*	Peloton Interactive Inc. Class A	26,036	931
^*	IAA Inc.	17,878	905
^*	GameStop Corp. Class A	5,700	846
	Harley-Davidson Inc.	22,100	833
	Rollins Inc.	23,436	802
	BorgWarner Inc.	17,234	777
	Whirlpool Corp.	3,182	747
^*	Terminix Global Holdings Inc.	16,325	738
^*	Planet Fitness Inc. Class A	8,000	725
^*	DraftKings Inc. Class A	26,000	714
	Qurate Retail Inc. Class A	91,418	695
^*	Las Vegas Sands Corp.	18,100	681
^*	Royal Caribbean Cruises Ltd.	8,832	679
	Pool Corp.	1,184	670
^*	Frontdoor Inc.	17,660	647
^*	Liberty Media Corp.-Liberty SiriusXM Class A	12,657	644
^*	QuantumScape Corp. Class A	27,500	610
	Wendy's Co.	24,919	594
^*	Wynn Resorts Ltd.	6,599	561
	Lennar Corp. Class B	5,464	522
^*	Sabre Corp.	59,600	512
^*	TripAdvisor Inc.	17,991	490
	Aramark	13,199	486
^*	Madison Square Garden Sports Corp.	2,748	477
	New York Times Co. Class A	8,914	431
	Vail Resorts Inc.	1,300	426
	Fox Corp. Class B	12,100	415
^*	Zynga Inc. Class A	64,300	412
^*	Bright Horizons Family Solutions Inc.	3,166	399
	Ralph Lauren Corp.	3,073	365
^*	Mattel Inc.	15,775	340
^*	Liberty Media Corp.-Liberty Formula One Class A	5,563	330
^*	Hyatt Hotels Corp. Class A	3,344	321
^*	Grand Canyon Education Inc.	3,737	320
^*	Figs Inc. Class A	8,500	234
	Foot Locker Inc.	3,866	169
	Columbia Sportswear Co.	1,683	164
	Hasbro Inc.	1,600	163
	Darden Restaurants Inc.	880	133
	Nexstar Media Group Inc. Class A	800	121
^*	Copa Holdings SA Class A	1,462	121
	Hanesbrands Inc.	6,700	112

Table of Contents

Tax-Managed Balanced Fund

		Shares	Market Value• ($000)
	Wyndham Hotels & Resorts Inc.	1,038	93
	Choice Hotels International Inc.	444	69
			695,417
Consumer Staples (2.3%)
	Procter & Gamble Co.	240,351	39,317
	PepsiCo Inc.	132,297	22,981
	Coca-Cola Co.	344,600	20,404
	CVS Health Corp.	117,445	12,116
	Mondelez International Inc. Class A	148,388	9,840
	Kroger Co.	146,534	6,632
^*	Monster Beverage Corp.	65,123	6,254
	Kellogg Co.	92,701	5,972
	Philip Morris International Inc.	58,903	5,596
	Colgate-Palmolive Co.	59,637	5,089
	Constellation Brands Inc. Class A	18,326	4,599
	Kimberly-Clark Corp.	28,821	4,119
	McKesson Corp.	15,695	3,901
	Church & Dwight Co. Inc.	35,278	3,616
	Corteva Inc.	75,255	3,558
	McCormick & Co. Inc. (Non-Voting)	36,470	3,523
	Archer-Daniels-Midland Co.	51,573	3,486
	Clorox Co.	19,218	3,351
	Walgreens Boots Alliance Inc.	64,118	3,344
	General Mills Inc.	48,414	3,262
	Sysco Corp.	38,967	3,061
	Hershey Co.	14,203	2,748
	Tyson Foods Inc. Class A	30,613	2,668
	Brown-Forman Corp. Class B	30,438	2,218
^*	Grocery Outlet Holding Corp.	68,800	1,946
	Lamb Weston Holdings Inc.	30,359	1,924
	AmerisourceBergen Corp.	14,106	1,875
^*	Post Holdings Inc.	16,005	1,804
	Altria Group Inc.	37,080	1,757
^*	Herbalife Nutrition Ltd.	40,333	1,651
	J M Smucker Co.	11,951	1,623
^*	Hain Celestial Group Inc.	37,828	1,612
	Conagra Brands Inc.	38,018	1,298
	Brown-Forman Corp. Class A	18,574	1,259
	Hormel Foods Corp.	22,584	1,102
^*	US Foods Holding Corp.	27,376	954
	Molson Coors Beverage Co. Class B	14,900	691
^*	Freshpet Inc.	7,200	686
	Keurig Dr Pepper Inc.	18,093	667

		Shares	Market Value• ($000)
	Casey's General Stores Inc.	3,314	654
	Ingredion Inc.	6,341	613
	Kraft Heinz Co.	11,229	403
	Reynolds Consumer Products Inc.	12,100	380
	Seaboard Corp.	93	366
	Campbell Soup Co.	7,400	322
^*	Darling Ingredients Inc.	2,600	180
^*	Olaplex Holdings Inc.	873	25
			205,447
Energy (1.3%)
	Exxon Mobil Corp.	289,978	17,744
	Chevron Corp.	135,342	15,882
	Devon Energy Corp.	214,218	9,436
	ConocoPhillips	108,540	7,834
	Continental Resources Inc.	119,715	5,358
	Marathon Oil Corp.	225,300	3,699
	EOG Resources Inc.	41,056	3,647
	Diamondback Energy Inc.	29,914	3,226
	Cheniere Energy Inc.	31,747	3,220
	Marathon Petroleum Corp.	48,458	3,101
	Pioneer Natural Resources Co.	15,691	2,854
	Schlumberger NV	90,000	2,696
	Occidental Petroleum Corp.	88,690	2,571
	Phillips 66	31,975	2,317
	Valero Energy Corp.	28,900	2,171
^*	ChampionX Corp.	99,308	2,007
	Halliburton Co.	87,730	2,006
	Coterra Energy Inc.	101,672	1,932
	Hess Corp.	25,949	1,921
^*	Range Resources Corp.	99,510	1,774
	ONEOK Inc.	28,464	1,673
^*	EQT Corp.	72,232	1,575
^*	First Solar Inc.	17,966	1,566
	Murphy Oil Corp.	59,729	1,560
^*	Plug Power Inc.	52,300	1,476
	Baker Hughes Co.	53,447	1,286
^*	Enphase Energy Inc.	6,000	1,098
	Williams Cos. Inc.	36,405	948
	HollyFrontier Corp.	20,892	685
^*	NOV Inc.	50,300	682
	Targa Resources Corp.	12,000	627
	APA Corp.	20,000	538
	Kinder Morgan Inc.	33,300	528
	DT Midstream Inc.	8,587	412
^*	Shoals Technologies Group Inc. Class A	5,900	143
			110,193
Financials (5.0%)
^*	Berkshire Hathaway Inc. Class B	191,481	57,253

Table of Contents

Tax-Managed Balanced Fund

		Shares	Market Value• ($000)
	JPMorgan Chase & Co.	287,472	45,521
	Bank of America Corp.	797,988	35,503
	Wells Fargo & Co.	299,159	14,354
	Morgan Stanley	142,641	14,002
	S&P Global Inc.	26,017	12,278
	Goldman Sachs Group Inc.	31,593	12,086
	Citigroup Inc.	188,000	11,353
	Charles Schwab Corp.	122,499	10,302
^*	SVB Financial Group	14,756	10,008
	BlackRock Inc.	10,561	9,669
	Marsh & McLennan Cos. Inc.	49,821	8,660
	Aon plc Class A	27,728	8,334
	Chubb Ltd.	39,599	7,655
	PNC Financial Services Group Inc.	37,095	7,438
	Intercontinental Exchange Inc.	50,126	6,856
	Progressive Corp.	64,645	6,636
	Moody's Corp.	16,498	6,444
	Truist Financial Corp.	109,424	6,407
	MFA Financial Inc.	1,400,283	6,385
	First Republic Bank	30,426	6,283
	US Bancorp	101,700	5,713
	Sterling Bancorp	220,858	5,696
	CME Group Inc.	24,318	5,556
	MSCI Inc.	8,302	5,087
	Pinnacle Financial Partners Inc.	48,700	4,651
	Bank of New York Mellon Corp.	67,629	3,928
	Allstate Corp.	28,622	3,367
	Aflac Inc.	57,474	3,356
	MetLife Inc.	50,516	3,157
	Travelers Cos. Inc.	20,181	3,157
	Ameriprise Financial Inc.	9,883	2,981
	Blackstone Inc.	23,000	2,976
^*	Arch Capital Group Ltd.	63,827	2,837
	First Citizens BancShares Inc. Class A	3,400	2,821
	Discover Financial Services	23,903	2,762
^*	Brighthouse Financial Inc.	52,982	2,744
^*	Markel Corp.	2,130	2,628
	Willis Towers Watson plc	11,000	2,612
	American International Group Inc.	44,900	2,553
	State Street Corp.	26,969	2,508
	T. Rowe Price Group Inc.	12,074	2,374
	Assured Guaranty Ltd.	43,927	2,205
	Fifth Third Bancorp	50,575	2,203
	Hartford Financial Services Group Inc.	31,442	2,171
	FactSet Research Systems Inc.	4,244	2,063
	Zions Bancorp NA	30,699	1,939

		Shares	Market Value• ($000)
	East West Bancorp Inc.	23,855	1,877
	Arthur J Gallagher & Co.	10,997	1,866
	Brown & Brown Inc.	26,238	1,844
	Wintrust Financial Corp.	19,700	1,789
	Raymond James Financial Inc.	17,151	1,722
	Nasdaq Inc.	8,023	1,685
	Ally Financial Inc.	35,254	1,678
	W R Berkley Corp.	19,249	1,586
	Voya Financial Inc.	22,512	1,493
^*	Alleghany Corp.	2,233	1,491
^*	Credit Acceptance Corp.	2,161	1,486
	Globe Life Inc.	15,679	1,469
	Regions Financial Corp.	66,902	1,458
	KeyCorp	57,018	1,319
	Reinsurance Group of America Inc.	11,595	1,270
	Broadridge Financial Solutions Inc.	6,831	1,249
	Prudential Financial Inc.	11,212	1,214
	Lincoln National Corp.	16,530	1,128
	MarketAxess Holdings Inc.	2,731	1,123
	KKR & Co. Inc.	15,000	1,118
	Citizens Financial Group Inc.	23,643	1,117
^*	Athene Holding Ltd. Class A	13,120	1,093
	Cboe Global Markets Inc.	7,925	1,033
	Western Alliance Bancorp	9,230	994
	Santander Consumer USA Holdings Inc.	23,585	991
	Assurant Inc.	5,942	926
	Hanover Insurance Group Inc.	6,939	909
	Commerce Bancshares Inc.	12,959	891
	Popular Inc.	10,841	889
	Northern Trust Corp.	6,972	834
	Jefferies Financial Group Inc.	21,416	831
	Cincinnati Financial Corp.	7,091	808
	RenaissanceRe Holdings Ltd.	4,651	788
	New York Community Bancorp Inc.	60,600	740
	Everest Re Group Ltd.	2,700	740
	Signature Bank	2,248	727
	Huntington Bancshares Inc.	42,792	660
	M&T Bank Corp.	4,300	660
	Morningstar Inc.	1,882	644
	LPL Financial Holdings Inc.	4,000	640
	SEI Investments Co.	9,913	604
	MGIC Investment Corp.	35,128	507

Table of Contents

Tax-Managed Balanced Fund

		Shares	Market Value• ($000)
	White Mountains Insurance Group Ltd.	498	505
	BOK Financial Corp.	4,040	426
^*	Upstart Holdings Inc.	2,800	424
	CNA Financial Corp.	8,693	383
	Interactive Brokers Group Inc. Class A	4,420	351
	Primerica Inc.	2,200	337
	Synovus Financial Corp.	6,525	312
	Equitable Holdings Inc.	9,264	304
	Bank OZK	6,200	289
	OneMain Holdings Inc.	4,339	217
	Erie Indemnity Co. Class A	872	168
	Rocket Cos. Inc. Class A	11,600	162
	Unum Group	6,127	151
	SLM Corp.	6,800	134
	American Financial Group Inc.	972	133
	Kemper Corp.	2,200	129
	First Horizon Corp.	3,430	56
	Franklin Resources Inc.	1,525	51
	Affiliated Managers Group Inc.	184	30
			439,925
Health Care (5.9%)
	UnitedHealth Group Inc.	92,396	46,396
	Johnson & Johnson	209,814	35,893
	Pfizer Inc.	508,307	30,016
	Thermo Fisher Scientific Inc.	42,487	28,349
	Abbott Laboratories	164,134	23,100
	Eli Lilly & Co.	82,098	22,677
	Danaher Corp.	65,315	21,489
	Merck & Co. Inc.	214,721	16,456
	AbbVie Inc.	121,396	16,437
^*	Intuitive Surgical Inc.	37,734	13,558
	Zoetis Inc.	52,768	12,877
	Medtronic plc	122,867	12,711
	Amgen Inc.	52,569	11,826
	Anthem Inc.	23,239	10,772
	Cigna Corp.	40,282	9,250
^*	Edwards Lifesciences Corp.	66,234	8,581
	Bristol-Myers Squibb Co.	134,884	8,410
	Stryker Corp.	30,849	8,250
^*	IDEXX Laboratories Inc.	12,149	8,000
^*	Moderna Inc.	30,403	7,722
	Gilead Sciences Inc.	99,635	7,234
	HCA Healthcare Inc.	27,941	7,179
^*	IQVIA Holdings Inc.	23,471	6,622
	Humana Inc.	13,882	6,439
^*	Vertex Pharmaceuticals Inc.	28,258	6,205
^*	Regeneron Pharmaceuticals Inc.	8,903	5,622
^*	Illumina Inc.	14,310	5,444

		Shares	Market Value• ($000)
^*	Align Technology Inc.	8,178	5,374
^*	Laboratory Corp. of America Holdings	16,697	5,246
	Becton Dickinson & Co.	19,412	4,882
	Agilent Technologies Inc.	29,707	4,743
^*	Boston Scientific Corp.	107,673	4,574
^*	Biogen Inc.	16,989	4,076
^*	Dexcom Inc.	7,279	3,908
	Baxter International Inc.	42,800	3,674
^*	Centene Corp.	42,874	3,533
^*	Catalent Inc.	27,491	3,520
^*	Charles River Laboratories International Inc.	8,059	3,036
	ResMed Inc.	11,300	2,943
	PerkinElmer Inc.	13,223	2,659
^*	Acadia Healthcare Co. Inc.	43,032	2,612
	Bio-Techne Corp.	4,831	2,499
^*	Bio-Rad Laboratories Inc. Class A	3,202	2,419
	Viatris Inc.	176,060	2,382
^*	Teladoc Health Inc.	25,500	2,341
	Zimmer Biomet Holdings Inc.	18,070	2,296
^*	Hologic Inc.	29,853	2,286
^*	Veeva Systems Inc. Class A	8,933	2,282
^*	Molina Healthcare Inc.	7,010	2,230
	Quest Diagnostics Inc.	12,819	2,218
	STERIS plc	8,945	2,177
^*	Seagen Inc.	13,963	2,159
	Cooper Cos. Inc.	5,136	2,152
	West Pharmaceutical Services Inc.	4,202	1,971
^*	DaVita Inc.	17,119	1,947
^*	Exact Sciences Corp.	24,718	1,924
^*	Horizon Therapeutics plc	17,602	1,897
^*	ABIOMED Inc.	4,438	1,594
^*	Sarepta Therapeutics Inc.	17,500	1,576
^*	Envista Holdings Corp.	34,520	1,555
^*	Masimo Corp.	4,949	1,449
^*	Elanco Animal Health Inc.	49,626	1,408
^*	Ultragenyx Pharmaceutical Inc.	16,000	1,345
^*	Alnylam Pharmaceuticals Inc.	7,820	1,326
^*	BioMarin Pharmaceutical Inc.	14,800	1,308
^*	QIAGEN NV	23,457	1,304
	Teleflex Inc.	3,932	1,292
^*	Penumbra Inc.	4,163	1,196
	Universal Health Services Inc. Class B	9,109	1,181
	DENTSPLY SIRONA Inc.	18,983	1,059
^*	Quidel Corp.	7,200	972
^*	Insulet Corp.	3,622	964
^*	Natera Inc.	8,600	803

Table of Contents

Tax-Managed Balanced Fund

		Shares	Market Value• ($000)
	Cerner Corp.	8,193	761
	Royalty Pharma plc Class A	18,300	729
^*	Neurocrine Biosciences Inc.	8,264	704
	Chemed Corp.	1,300	688
	Organon & Co.	21,472	654
^*	Exelixis Inc.	34,103	623
^*	Novocure Ltd.	7,900	593
^*	United Therapeutics Corp.	2,593	560
^*	Adaptive Biotechnologies Corp.	19,500	547
	Premier Inc. Class A	12,944	533
^*	Guardant Health Inc.	5,038	504
^*	CureVac NV	14,600	501
^*	Avantor Inc.	10,252	432
	Cardinal Health Inc.	8,345	430
^*	Amedisys Inc.	2,500	405
^*	10X Genomics Inc. Class A	2,300	343
^*	Certara Inc.	11,900	338
^*	Signify Health Inc. Class A	18,700	266
^*	Oak Street Health Inc.	7,300	242
^*	Integra LifeSciences Holdings Corp.	3,189	214
	Encompass Health Corp.	2,416	158
^*	Tandem Diabetes Care Inc.	1,000	150
	Bruker Corp.	1,500	126
			518,308
Industrials (6.3%)
	Visa Inc. Class A	165,796	35,930
	Mastercard Inc. Class A	87,886	31,579
	Accenture plc Class A	58,776	24,366
^*	PayPal Holdings Inc.	125,347	23,638
	Union Pacific Corp.	64,593	16,273
	Honeywell International Inc.	69,897	14,574
	United Parcel Service Inc. Class B	52,034	11,153
	Deere & Co.	32,002	10,973
	Capital One Financial Corp.	72,192	10,474
	American Express Co.	63,198	10,339
	Sherwin-Williams Co.	29,142	10,263
^*	Boeing Co.	48,266	9,717
	Caterpillar Inc.	45,524	9,412
	3M Co.	50,985	9,056
	CSX Corp.	239,766	9,015
	Raytheon Technologies Corp.	103,888	8,941
	General Electric Co.	84,054	7,941
	Automatic Data Processing Inc.	31,334	7,726
	Lockheed Martin Corp.	21,492	7,638
^*	Fiserv Inc.	71,839	7,456

		Shares	Market Value• ($000)
	Norfolk Southern Corp.	24,666	7,343
	AMETEK Inc.	46,011	6,765
	Illinois Tool Works Inc.	26,375	6,509
^*	Block Inc. Class A	39,008	6,300
	IHS Markit Ltd.	44,814	5,957
	Fidelity National Information Services Inc.	51,938	5,669
	Eaton Corp. plc	31,645	5,469
^*	Mettler-Toledo International Inc.	3,121	5,297
	Vulcan Materials Co.	25,110	5,212
	FedEx Corp.	19,930	5,155
	Martin Marietta Materials Inc.	10,626	4,681
	Cintas Corp.	10,373	4,597
^*	Keysight Technologies Inc.	21,308	4,400
	Emerson Electric Co.	47,090	4,378
	Global Payments Inc.	32,231	4,357
	Trane Technologies plc	21,310	4,305
^*	Middleby Corp.	20,834	4,099
	Carrier Global Corp.	74,958	4,066
	Northrop Grumman Corp.	10,446	4,043
^*	United Rentals Inc.	12,074	4,012
^*	TransDigm Group Inc.	6,285	3,999
	PPG Industries Inc.	22,949	3,957
	Rockwell Automation Inc.	10,862	3,789
	Equifax Inc.	12,823	3,754
	Ball Corp.	37,125	3,574
^*	Mohawk Industries Inc.	19,372	3,529
	Fortive Corp.	45,701	3,487
	Quanta Services Inc.	30,093	3,450
	Old Dominion Freight Line Inc.	9,621	3,448
^*	Zebra Technologies Corp. Class A	5,716	3,402
	Howmet Aerospace Inc.	105,166	3,347
^*	Teledyne Technologies Inc.	7,464	3,261
^*	Berry Global Group Inc.	43,393	3,202
	Eagle Materials Inc.	18,979	3,159
	DuPont de Nemours Inc.	38,914	3,144
	Verisk Analytics Inc.	13,447	3,076
	Xylem Inc.	25,125	3,013
	Ingersoll Rand Inc.	48,482	3,000
	Parker-Hannifin Corp.	9,302	2,959
^*	Waters Corp.	7,833	2,919
	L3Harris Technologies Inc.	13,517	2,882
	Textron Inc.	36,284	2,801
^*	AECOM	35,745	2,765
	General Dynamics Corp.	13,091	2,729
	Crown Holdings Inc.	23,861	2,640
	Otis Worldwide Corp.	30,224	2,632
^*	Trimble Inc.	30,037	2,619
	PACCAR Inc.	28,448	2,511
	IDEX Corp.	10,462	2,472
	TransUnion	19,883	2,358

Table of Contents

Tax-Managed Balanced Fund

		Shares	Market Value• ($000)
	Stanley Black & Decker Inc.	11,796	2,225
	A O Smith Corp.	25,732	2,209
	Fortune Brands Home & Security Inc.	20,487	2,190
	HEICO Corp. Class A	17,003	2,185
	Jacobs Engineering Group Inc.	15,658	2,180
	Nordson Corp.	8,492	2,168
^*	Colfax Corp.	46,190	2,123
	Johnson Controls International plc	25,378	2,064
	Synchrony Financial	41,089	1,906
	Cummins Inc.	8,721	1,902
	Carlisle Cos. Inc.	7,633	1,894
	Masco Corp.	26,716	1,876
	ITT Inc.	18,189	1,859
	JB Hunt Transport Services Inc.	8,852	1,809
^*	FleetCor Technologies Inc.	7,468	1,672
	Sealed Air Corp.	23,960	1,617
	Allegion plc	12,151	1,609
^*	Kirby Corp.	27,000	1,604
	Dover Corp.	8,810	1,600
	AGCO Corp.	13,710	1,591
	Lennox International Inc.	4,681	1,518
	Oshkosh Corp.	12,558	1,415
	WW Grainger Inc.	2,682	1,390
^*	Sensata Technologies Holding plc	22,433	1,384
	MKS Instruments Inc.	7,915	1,379
	Valmont Industries Inc.	5,396	1,352
	Toro Co.	13,011	1,300
^*	StoneCo Ltd. Class A	75,500	1,273
	Paychex Inc.	9,200	1,256
	Owens Corning	13,342	1,207
	Huntington Ingalls Industries Inc.	6,396	1,194
	Cognex Corp.	14,825	1,153
^*	Paysafe Ltd.	294,600	1,152
	Landstar System Inc.	6,235	1,116
^*	GXO Logistics Inc.	11,342	1,030
	Packaging Corp. of America	7,444	1,014
^*	XPO Logistics Inc.	11,342	878
	Knight-Swift Transportation Holdings Inc. Class A	14,300	871
	RPM International Inc.	8,489	857
	Silgan Holdings Inc.	18,967	813
	Armstrong World Industries Inc.	6,812	791
	Regal Rexnord Corp.	4,625	787
	Expeditors International of Washington Inc.	5,586	750
	Pentair plc	10,087	737
	Donaldson Co. Inc.	12,229	725

		Shares	Market Value• ($000)
	Air Lease Corp. Class A	15,591	690
^*	Coherent Inc.	2,590	690
	AptarGroup Inc.	5,600	686
	BWX Technologies Inc.	14,202	680
^*	Gates Industrial Corp. plc	42,069	669
^*	WESCO International Inc.	4,845	638
^*	Fair Isaac Corp.	1,440	625
^*	Bill.com Holdings Inc.	2,500	623
	Booz Allen Hamilton Holding Corp.	6,943	589
	Genpact Ltd.	11,065	587
	CH Robinson Worldwide Inc.	5,311	572
	Robert Half International Inc.	5,000	558
	Jack Henry & Associates Inc.	3,232	540
	Spirit AeroSystems Holdings Inc. Class A	12,300	530
	Littelfuse Inc.	1,673	526
	Lincoln Electric Holdings Inc.	3,765	525
^*	Shift4 Payments Inc. Class A	7,900	458
	Snap-on Inc.	2,097	452
^*	WEX Inc.	3,040	427
^*	Axalta Coating Systems Ltd.	12,120	401
	Graco Inc.	4,912	396
	nVent Electric plc	10,087	383
^*	TuSimple Holdings Inc. Class A	10,400	373
	Vontier Corp.	12,079	371
	Brunswick Corp.	3,628	365
	Schneider National Inc. Class B	13,062	352
	Flowserve Corp.	10,413	319
	Graphic Packaging Holding Co.	15,800	308
	MDU Resources Group Inc.	9,950	307
^*	Paylocity Holding Corp.	1,300	307
	Curtiss-Wright Corp.	2,100	291
^*	Euronet Worldwide Inc.	2,192	261
	ADT Inc.	28,622	241
	ManpowerGroup Inc.	2,450	238
	Hubbell Inc. Class B	1,100	229
	HEICO Corp.	1,087	157
	Alliance Data Systems Corp.	1,600	107
^*	Legalzoom.com Inc.	6,500	104
^*	Loyalty Ventures Inc.	640	19
			555,175
Other (0.6%)
¹	Vanguard Tax-Exempt Bond Index ETF	1,019,049	55,956

Table of Contents

Tax-Managed Balanced Fund

		Shares	Market Value• ($000)
Real Estate (1.5%)
	Prologis Inc.	84,344	14,200
	American Tower Corp.	42,619	12,466
	Crown Castle International Corp.	41,238	8,608
	SBA Communications Corp.	21,594	8,400
	Equinix Inc.	9,349	7,908
	Public Storage	12,156	4,553
	Digital Realty Trust Inc.	24,538	4,340
^*	CBRE Group Inc. Class A	38,001	4,123
	Iron Mountain Inc.	73,597	3,851
	American Homes 4 Rent Class A	76,425	3,333
^*	CoStar Group Inc.	38,690	3,058
	Extra Space Storage Inc.	13,300	3,016
^*	Jones Lang LaSalle Inc.	10,212	2,751
	Equity Residential	30,250	2,738
	Simon Property Group Inc.	17,000	2,716
	AvalonBay Communities Inc.	9,828	2,482
	Welltower Inc.	26,763	2,295
^*	Howard Hughes Corp.	22,500	2,290
	Weyerhaeuser Co.	54,846	2,259
	Mid-America Apartment Communities Inc.	9,294	2,132
	Essex Property Trust Inc.	5,973	2,104
	Equity LifeStyle Properties Inc.	22,346	1,959
	Camden Property Trust	10,700	1,912
^*	Host Hotels & Resorts Inc.	109,599	1,906
	Alexandria Real Estate Equities Inc.	8,330	1,857
^*	Zillow Group Inc. Class C	27,791	1,774
	Duke Realty Corp.	26,790	1,758
	SL Green Realty Corp.	23,751	1,703
^*	Park Hotels & Resorts Inc.	90,100	1,701
	Americold Realty Trust	49,062	1,609
	Healthpeak Properties Inc.	30,867	1,114
	Realty Income Corp.	14,500	1,038
	Invitation Homes Inc.	21,896	993
	Apartment Income REIT Corp.	17,807	974
	Sun Communities Inc.	4,500	945
	Lamar Advertising Co. Class A	7,467	906
	Boston Properties Inc.	7,581	873
	Rexford Industrial Realty Inc.	10,000	811
	UDR Inc.	12,695	762
	JBG SMITH Properties	25,200	723
	Kilroy Realty Corp.	10,852	721
	Douglas Emmett Inc.	20,790	696
	Ventas Inc.	13,600	695
	CyrusOne Inc.	7,600	682

		Shares	Market Value• ($000)
	First Industrial Realty Trust Inc.	7,000	463
	Federal Realty Investment Trust	3,019	412
	VICI Properties Inc.	12,500	376
	Medical Properties Trust Inc.	10,779	255
^*	Zillow Group Inc. Class A	3,647	227
	Rayonier Inc.	5,100	206
	Life Storage Inc.	513	79
	STORE Capital Corp.	1,277	44
	American Campus Communities Inc.	760	44
^*	Orion Office REIT Inc.	1,450	27
			129,868
Technology (14.2%)
	Apple Inc.	1,438,146	255,372
	Microsoft Corp.	720,284	242,246
^*	Alphabet Inc. Class A	32,605	94,458
^*	Meta Platforms Inc. Class A	232,772	78,293
^*	Alphabet Inc. Class C	25,264	73,104
	NVIDIA Corp.	238,060	70,016
^*	Adobe Inc.	48,224	27,346
	Broadcom Inc.	32,749	21,792
^*	salesforce.com Inc.	81,260	20,651
	Intel Corp.	386,436	19,901
	QUALCOMM Inc.	108,410	19,825
	Intuit Inc.	25,152	16,178
	Oracle Corp.	178,205	15,541
^*	Advanced Micro Devices Inc.	103,623	14,911
	Texas Instruments Inc.	78,992	14,888
	Applied Materials Inc.	90,715	14,275
	Micron Technology Inc.	127,810	11,905
^*	ServiceNow Inc.	17,885	11,609
	Lam Research Corp.	13,149	9,456
	Roper Technologies Inc.	14,570	7,166
^*	Autodesk Inc.	23,262	6,541
^*	Synopsys Inc.	17,230	6,349
^*	Cadence Design Systems Inc.	33,815	6,301
	International Business Machines Corp.	45,903	6,135
	Xilinx Inc.	28,929	6,134
	Analog Devices Inc.	33,550	5,897
	Amphenol Corp. Class A	65,560	5,734
	Marvell Technology Inc.	62,986	5,511
^*	Snowflake Inc. Class A	15,761	5,339
^*	Workday Inc. Class A	18,747	5,121
^*	ON Semiconductor Corp.	72,209	4,904
^*	Atlassian Corp. plc Class A	12,259	4,674
	HP Inc.	119,671	4,508
^*	Fortinet Inc.	12,162	4,371
	Cognizant Technology Solutions Corp. Class A	48,018	4,260

Table of Contents

Tax-Managed Balanced Fund

		Shares	Market Value• ($000)
	KLA Corp.	9,317	4,007
^*	Twilio Inc. Class A	14,230	3,747
^*	Match Group Inc.	27,592	3,649
^*	Zoom Video Communications Inc. Class A	19,300	3,549
	Microchip Technology Inc.	40,540	3,529
^*	Twitter Inc.	74,635	3,226
	Teradyne Inc.	19,532	3,194
^*	Okta Inc.	13,316	2,985
^*	ANSYS Inc.	7,369	2,956
^*	VeriSign Inc.	11,621	2,950
^*	Gartner Inc.	8,596	2,874
^*	Palantir Technologies Inc. Class A	151,834	2,765
	Skyworks Solutions Inc.	17,100	2,653
	Corning Inc.	68,131	2,537
	VMware Inc. Class A	21,838	2,531
^*	Crowdstrike Holdings Inc. Class A	11,800	2,416
^*	Arrow Electronics Inc.	17,906	2,404
^*	Palo Alto Networks Inc.	4,128	2,298
^*	EPAM Systems Inc.	3,426	2,290
	NXP Semiconductors NV	9,800	2,232
^*	DocuSign Inc.	14,425	2,197
^*	Datadog Inc. Class A	12,000	2,137
^*	Wolfspeed Inc.	18,851	2,107
^*	Akamai Technologies Inc.	17,101	2,001
^*	MongoDB Inc.	3,694	1,955
	Xerox Holdings Corp.	86,118	1,950
	Hewlett Packard Enterprise Co.	120,529	1,901

Name of Registrant:	Vanguard Tax-Managed 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