vanguard 500 index fund · about your fund’s expenses 1 as a shareholder of the fund, you incur...
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See the inside front cover for important information about accessto your fund’s annual and semiannual shareholder reports.
Semiannual Report | June 30, 2019
Vanguard 500 Index Fund
Contents
Important information about access to shareholder reports
Beginning on January 1, 2021, as permitted by regulations adopted by theSecurities and Exchange Commission, paper copies of your fund’s annual andsemiannual shareholder reports will no longer be sent to you by mail, unless youspecifically request them. Instead, you will be notified by mail each time a reportis 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 notbe affected by this change and do not need to take any action. You may elect toreceive shareholder reports and other communications from the fund electronicallyby contacting your financial intermediary (such as a broker-dealer or bank) or, if youinvest directly with the fund, by calling Vanguard at one of the phone numbers onthe back cover of this report or by logging on to vanguard.com.
You may elect to receive paper copies of all future shareholder reports freeof charge. If you invest through a financial intermediary, you can contact theintermediary to request that you continue to receive paper copies. If you investdirectly with the fund, you can call Vanguard at one of the phone numbers on theback cover of this report or log on to vanguard.com. Your election to receive papercopies will apply to all the funds you hold through an intermediary or directly withVanguard.
About Your Fund’s Expenses. . . . . . . . . . . . . . . . . . . . . . . . . 1
Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Trustees Approve Advisory Arrangement. . . . . . . . . . . . . . 24
About Your Fund’s Expenses
1
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 sellingsecurities. Further, the expenses do not include any purchase, redemption, or account servicefees described in the fund prospectus. If such fees were applied to your account, your costswould 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 mayhave been higher or lower, depending on the amount of your investment and the timing of anypurchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in theFinancial Statements section of this report. For additional information on operating expenses andother shareholder costs, please refer to your fund’s current prospectus.
2
Six Months Ended June 30, 2019
500 Index Fund
BeginningAccount Value
12/31/2018
EndingAccount Value
6/30/2019
ExpensesPaid During
Period
Based on Actual Fund Return
Investor Shares $1,000.00 $1,184.70 $0.76
ETF Shares 1,000.00 1,185.26 0.16
Admiral™ Shares 1,000.00 1,185.26 0.22
Institutional Select Shares 1,000.00 1,185.45 0.05
Based on Hypothetical 5% Yearly Return
Investor Shares $1,000.00 $1,024.10 $0.70
ETF Shares 1,000.00 1,024.65 0.15
Admiral Shares 1,000.00 1,024.60 0.20
Institutional Select Shares 1,000.00 1,024.74 0.05
The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios forthat period are 0.14% for Investor Shares, 0.03% for ETF Shares, 0.04% for Admiral Shares, and 0.01% for Institutional Select Shares. Thedollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over theperiod, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent12-month period (181/365).
Sector DiversificationAs of June 30, 2019
500 Index Fund
3
Communication Services 10.2%
Consumer Discretionary 10.2
Consumer Staples 7.3
Energy 5.0
Financials 13.1
Health Care 14.2
Industrials 9.4
Information Technology 21.5
Materials 2.8
Real Estate 3.0
Utilities 3.3
The table reflects the fund’s equity exposure, based on its invest-ments in stocks and stock index futures. Any holdings in short-termreserves are excluded. Sector categories are based on the GlobalIndustry Classification Standard (“GICS”), except for the “Other”category (if applicable), which includes securities that have notbeen provided a GICS classification as of the effective reportingperiod.
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.
Financial Statements (unaudited)
Statement of Net AssetsAs of June 30, 2019
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Common Stocks (99.5%)1
Communication Services (10.1%) * Facebook Inc. Class A 47,278,335 9,124,719* Alphabet Inc. Class C 6,032,827 6,520,943* Alphabet Inc. Class A 5,890,672 6,378,420
AT&T Inc. 143,615,084 4,812,541
Walt Disney Co. 34,353,680 4,797,148
Verizon
Communications Inc. 81,384,513 4,649,497
Comcast Corp. Class A 89,132,852 3,768,537* Netflix Inc. 8,604,104 3,160,459* Charter
Communications Inc.
Class A 3,385,349 1,337,822
Activision Blizzard Inc. 15,072,185 711,407* Electronic Arts Inc. 5,836,306 590,984* Twitter Inc. 14,365,321 501,350
Omnicom Group Inc. 4,333,892 355,162
CBS Corp. Class B 6,921,874 345,402* Take-Two Interactive
Software Inc. 2,215,354 251,509
Fox Corp. Class A 6,803,562 249,282
CenturyLink Inc. 18,887,509 222,117
Viacom Inc. Class B 6,961,294 207,934* Discovery
Communications Inc. 7,045,842 200,454* DISH Network Corp.
Class A 4,541,748 174,449
Interpublic Group of
Cos. Inc. 7,618,805 172,109
News Corp. Class A 10,069,982 135,844
Fox Corp. Class B 3,361,443 122,794* Discovery
Communications Inc.
Class A 3,154,175 96,833* TripAdvisor Inc. 2,037,581 94,320
News Corp. Class B 6,219 87
48,982,123
Consumer Discretionary (10.2%) * Amazon.com Inc. 8,138,251 15,410,836
Home Depot Inc. 21,652,434 4,503,057
McDonald’s Corp. 15,025,420 3,120,179
NIKE Inc. Class B 24,728,892 2,075,990
Starbucks Corp. 23,834,266 1,998,027* Booking Holdings Inc. 851,946 1,597,152
Lowe’s Cos. Inc. 15,404,682 1,554,486
TJX Cos. Inc. 23,863,607 1,261,908
General Motors Co. 25,956,896 1,000,119
Target Corp. 10,081,540 873,162
Ford Motor Co. 77,105,626 788,791
Marriott International
Inc. Class A 5,438,173 762,921
Ross Stores Inc. 7,229,838 716,622
Dollar General Corp. 5,082,762 686,986
Yum! Brands Inc. 6,020,340 666,271
eBay Inc. 16,118,825 636,694* O’Reilly Automotive Inc. 1,540,009 568,756
Hilton Worldwide
Holdings Inc. 5,726,302 559,689
VF Corp. 6,407,096 559,660* AutoZone Inc. 482,509 530,504* Dollar Tree Inc. 4,673,953 501,936
Royal Caribbean
Cruises Ltd. 3,383,978 410,172
Aptiv plc 5,071,478 409,928* Ulta Beauty Inc. 1,093,199 379,220
Carnival Corp. 7,881,680 366,892* Chipotle Mexican Grill
Inc. Class A 480,020 351,797
Best Buy Co. Inc. 4,573,157 318,886
Expedia Group Inc. 2,329,195 309,853
Genuine Parts Co. 2,875,154 297,808
Darden Restaurants Inc. 2,420,788 294,683
DR Horton Inc. 6,684,086 288,285
MGM Resorts
International 10,045,911 287,012* CarMax Inc. 3,270,562 283,983
Lennar Corp. Class A 5,557,001 269,292
Tractor Supply Co. 2,374,863 258,385
Hasbro Inc. 2,279,205 240,866
Wynn Resorts Ltd. 1,907,305 236,487* Norwegian Cruise Line
Holdings Ltd. 4,239,899 227,386
Advance Auto Parts Inc. 1,412,051 217,654
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.
4
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Tiffany & Co. 2,126,816 199,155
Garmin Ltd. 2,386,717 190,460
Tapestry Inc. 5,711,215 181,217* Mohawk Industries Inc. 1,211,557 178,668
Whirlpool Corp. 1,245,644 177,330
BorgWarner Inc. 4,080,581 171,303* LKQ Corp. 6,171,304 164,218
PulteGroup Inc. 5,018,437 158,683
Kohl’s Corp. 3,189,407 151,656
PVH Corp. 1,474,632 139,559
Macy’s Inc. 6,080,099 130,479
Hanesbrands Inc. 7,115,513 122,529
L Brands Inc. 4,515,062 117,843
Newell Brands Inc. 7,616,614 117,448
H&R Block Inc. 4,001,925 117,256
Ralph Lauren Corp.
Class A 1,027,456 116,709
Harley-Davidson Inc. 3,130,603 112,169* Capri Holdings Ltd. 2,971,122 103,038
Leggett & Platt Inc. 2,583,691 99,136* Under Armour Inc.
Class A 3,686,125 93,443
Foot Locker Inc. 2,209,402 92,618* Under Armour Inc.
Class C 3,841,088 85,272
Gap Inc. 4,166,868 74,879
Nordstrom Inc. 2,070,224 65,957
Lennar Corp. Class B 76,975 2,964
Wyndham Hotels &
Resorts Inc. 216 12
48,986,336
Consumer Staples (7.2%)
Procter & Gamble Co. 49,358,698 5,412,181
Coca-Cola Co. 75,555,404 3,847,281
PepsiCo Inc. 27,585,452 3,617,280
Walmart Inc. 27,525,934 3,041,340
Philip Morris
International Inc. 30,615,636 2,404,246
Costco Wholesale Corp. 8,654,209 2,286,961
Altria Group Inc. 36,815,406 1,743,209
Mondelez International
Inc. Class A 28,346,123 1,527,856
Colgate-Palmolive Co. 16,895,046 1,210,868
Kimberly-Clark Corp. 6,765,087 901,651
Walgreens Boots
Alliance Inc. 15,292,314 836,031
Estee Lauder Cos. Inc.
Class A 4,314,677 790,061
Sysco Corp. 9,303,735 657,960
Constellation Brands
Inc. Class A 3,289,386 647,812
General Mills Inc. 11,781,252 618,751* Monster Beverage Corp. 7,699,226 491,442
Tyson Foods Inc.
Class A 5,799,388 468,243
Archer-Daniels-Midland
Co. 11,018,951 449,573
Clorox Co. 2,507,180 383,874
Kraft Heinz Co. 12,247,093 380,150
McCormick & Co. Inc. 2,410,690 373,681
Hershey Co. 2,742,037 367,515
Church & Dwight Co.
Inc. 4,846,716 354,101
Kroger Co. 15,878,785 344,728
Kellogg Co. 4,892,903 262,113
JM Smucker Co. 2,239,191 257,932
Conagra Brands Inc. 9,564,381 253,647^ Hormel Foods Corp. 5,360,524 217,316
Molson Coors Brewing
Co. Class B 3,696,404 206,999
Lamb Weston
Holdings Inc. 2,876,828 182,276
Brown-Forman Corp.
Class B 3,274,449 181,503
Campbell Soup Co. 3,793,906 152,022
Coty Inc. Class A 5,909,159 79,183
34,949,786
Energy (5.0%)
Exxon Mobil Corp. 83,265,034 6,380,600
Chevron Corp. 37,487,114 4,664,896
ConocoPhillips 22,240,040 1,356,642
Schlumberger Ltd. 27,256,853 1,083,187
EOG Resources Inc. 11,419,838 1,063,872
Kinder Morgan Inc. 38,306,054 799,830
Phillips 66 8,218,294 768,739
Occidental Petroleum
Corp. 14,718,281 740,035
Marathon Petroleum
Corp. 13,037,437 728,532
Valero Energy Corp. 8,209,330 702,801
Anadarko Petroleum
Corp. 9,879,589 697,104
Williams Cos. Inc. 23,841,346 668,511
ONEOK Inc. 8,120,343 558,761
Pioneer Natural
Resources Co. 3,313,336 509,790
Concho Resources Inc. 3,945,622 407,109
Halliburton Co. 17,190,401 390,910
Diamondback Energy
Inc. 3,044,127 331,719
Hess Corp. 5,017,396 318,956
Baker Hughes a GE Co.
Class A 10,135,346 249,634
Devon Energy Corp. 8,173,152 233,098
Marathon Oil Corp. 16,100,270 228,785
TechnipFMC plc 8,290,635 215,059
Apache Corp. 7,399,925 214,376
5
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Noble Energy Inc. 9,413,743 210,868
Cabot Oil & Gas Corp. 8,332,179 191,307
National Oilwell Varco
Inc. 7,596,375 168,867
HollyFrontier Corp. 3,092,485 143,120
Cimarex Energy Co. 1,996,690 118,464
Helmerich & Payne Inc. 2,175,533 110,126
24,255,698
Financials (13.0%) * Berkshire Hathaway
Inc. Class B 36,928,481 7,872,044
JPMorgan Chase &
Co. 63,834,373 7,136,683
Bank of America Corp. 174,006,336 5,046,184
Wells Fargo & Co. 79,595,739 3,766,470
Citigroup Inc. 45,506,247 3,186,802
American Express Co. 13,474,132 1,663,247
US Bancorp 29,445,769 1,542,958
Goldman Sachs
Group Inc. 6,693,270 1,369,443
CME Group Inc. 7,044,816 1,367,469
Chubb Ltd. 9,010,668 1,327,181
PNC Financial
Services Group Inc. 8,883,693 1,219,553
S&P Global Inc. 4,842,341 1,103,037
Morgan Stanley 25,157,504 1,102,150
BlackRock Inc. 2,341,283 1,098,764
Marsh & McLennan
Cos. Inc. 10,062,242 1,003,709
Intercontinental
Exchange Inc. 11,095,214 953,523
Charles Schwab Corp. 23,379,590 939,626
MetLife Inc. 18,700,575 928,858
Progressive Corp. 11,491,572 918,521
Aon plc 4,732,926 913,360
American International
Group Inc. 17,114,776 911,875
Capital One Financial
Corp. 9,239,724 838,413
Prudential Financial Inc. 7,988,547 806,843
Aflac Inc. 14,667,765 803,940
Travelers Cos. Inc. 5,153,487 770,549
Bank of New York
Mellon Corp. 17,331,749 765,197
BB&T Corp. 15,070,037 740,391
Allstate Corp. 6,553,759 666,452
Moody’s Corp. 3,245,387 633,857
SunTrust Banks Inc. 8,731,497 548,775
T. Rowe Price Group
Inc. 4,651,636 510,331
Discover Financial
Services 6,368,287 494,115
Willis Towers Watson
plc 2,542,304 486,953
M&T Bank Corp. 2,687,550 457,072
Synchrony Financial 12,474,239 432,482
State Street Corp. 7,339,513 411,453
Fifth Third Bancorp 14,302,998 399,054
MSCI Inc. Class A 1,665,502 397,705
Hartford Financial
Services Group Inc. 7,115,573 396,480
Northern Trust Corp. 4,281,872 385,368
Ameriprise Financial
Inc. 2,633,562 382,288
KeyCorp 19,847,859 352,300
Arthur J Gallagher & Co. 3,646,720 319,416
Citizens Financial
Group Inc. 9,022,310 319,029
Cincinnati Financial
Corp. 2,986,320 309,592
Regions Financial Corp. 19,943,546 297,957
Principal Financial
Group Inc. 5,099,265 295,349
Loews Corp. 5,280,931 288,709
Huntington
Bancshares Inc. 20,600,472 284,699* Berkshire Hathaway
Inc. Class A 809 257,545
Lincoln National Corp. 3,982,867 256,696
First Republic Bank 2,493,691 243,509* SVB Financial Group 1,028,619 231,018
Cboe Global Markets
Inc. 2,198,837 227,865
Comerica Inc. 3,034,832 220,450
Nasdaq Inc. 2,282,997 219,556
E*TRADE Financial
Corp. 4,815,746 214,782
Raymond James
Financial Inc. 2,486,865 210,264
Franklin Resources Inc. 5,794,208 201,638
Everest Re Group Ltd. 801,826 198,195
MarketAxess Holdings
Inc. 599,833 192,798
Torchmark Corp. 1,990,415 178,063
Zions Bancorp NA 3,593,996 165,252
Invesco Ltd. 7,884,901 161,325
Unum Group 4,170,858 139,932
People’s United
Financial Inc. 7,765,013 130,297
Assurant Inc. 1,154,205 122,784
Jefferies Financial
Group Inc. 4,984,598 95,854
Affiliated Managers
Group Inc. 1,007,732 92,852
62,926,901
Health Care (14.1%)
Johnson & Johnson 52,248,525 7,277,175
Pfizer Inc. 109,253,987 4,732,883
6
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
UnitedHealth Group
Inc. 18,011,977 4,395,103
Merck & Co. Inc. 50,665,894 4,248,335
Abbott Laboratories 34,716,360 2,919,646
Medtronic plc 26,382,383 2,569,380
Thermo Fisher
Scientific Inc. 7,871,388 2,311,669
Amgen Inc. 12,002,776 2,211,872
AbbVie Inc. 29,090,465 2,115,459
Eli Lilly & Co. 17,002,819 1,883,742
Danaher Corp. 12,397,330 1,771,826
Gilead Sciences Inc. 25,021,103 1,690,426
Bristol-Myers Squibb
Co. 32,185,355 1,459,606
Anthem Inc. 5,061,641 1,428,446
CVS Health Corp. 25,566,162 1,393,100
Becton Dickinson
and Co. 5,308,230 1,337,727* Celgene Corp. 13,879,619 1,283,032
Stryker Corp. 6,094,172 1,252,840* Intuitive Surgical Inc. 2,271,914 1,191,732
Cigna Corp. 7,467,280 1,176,470* Boston Scientific Corp. 27,366,717 1,176,222
Zoetis Inc. 9,419,359 1,069,003* Illumina Inc. 2,892,820 1,064,992
Allergan plc 6,063,001 1,015,128* Vertex Pharmaceuticals
Inc. 5,039,865 924,210* Biogen Inc. 3,815,492 892,329
Baxter International Inc. 9,335,586 764,584* Edwards Lifesciences
Corp. 4,102,642 757,922
HCA Healthcare Inc. 5,253,483 710,113
Humana Inc. 2,657,034 704,911* Alexion
Pharmaceuticals Inc. 4,411,403 577,806
McKesson Corp. 3,737,072 502,225* IQVIA Holdings Inc. 3,104,930 499,583* Regeneron
Pharmaceuticals Inc. 1,546,962 484,199
Zimmer Biomet
Holdings Inc. 4,028,818 474,353
Cerner Corp. 6,401,465 469,227* IDEXX Laboratories Inc. 1,691,904 465,832
Agilent Technologies Inc. 6,216,316 464,172* Centene Corp. 8,131,697 426,426* Mettler-Toledo
International Inc. 487,852 409,796* Align Technology Inc. 1,433,117 392,244
ResMed Inc. 2,822,650 344,448* Laboratory Corp. of
America Holdings 1,938,861 335,229
Cooper Cos. Inc. 974,120 328,171
Teleflex Inc. 908,495 300,848
* Incyte Corp. 3,503,609 297,667* Waters Corp. 1,367,639 294,371* WellCare Health Plans
Inc. 990,364 282,323
Cardinal Health Inc. 5,867,329 276,351
Quest Diagnostics Inc. 2,645,064 269,294
Dentsply Sirona Inc. 4,605,763 268,792
AmerisourceBergen
Corp. Class A 3,061,503 261,024* Hologic Inc. 5,276,515 253,378* Varian Medical
Systems Inc. 1,790,188 243,698* ABIOMED Inc. 888,313 231,397
Universal Health
Services Inc. Class B 1,631,448 212,725
PerkinElmer Inc. 2,183,492 210,358* Henry Schein Inc. 2,934,495 205,121* Mylan NV 10,146,531 193,190* DaVita Inc. 2,489,321 140,049* Nektar Therapeutics
Class A 3,431,184 122,082
Perrigo Co. plc 2,462,762 117,277
68,083,539
Industrials (9.3%)
Boeing Co. 10,297,003 3,748,212
Honeywell
International Inc. 14,321,068 2,500,315
Union Pacific Corp. 13,929,379 2,355,597
United Technologies
Corp. 15,961,912 2,078,241
3M Co. 11,342,733 1,966,149
General Electric Co. 171,603,849 1,801,840
Lockheed Martin Corp. 4,836,924 1,758,415
Caterpillar Inc. 11,252,271 1,533,572
United Parcel Service
Inc. Class B 13,727,036 1,417,591
CSX Corp. 15,127,497 1,170,414
Northrop Grumman
Corp. 3,341,457 1,079,658
Norfolk Southern Corp. 5,233,823 1,043,258
Deere & Co. 6,237,917 1,033,685
General Dynamics Corp. 5,343,182 971,497
Raytheon Co. 5,481,354 953,098
Illinois Tool Works Inc. 5,897,406 889,388
Waste Management Inc. 7,688,116 886,978
Emerson Electric Co. 12,093,548 806,882
FedEx Corp. 4,716,900 774,468
Roper Technologies Inc. 2,043,123 748,314
Eaton Corp. plc 8,324,656 693,277
Delta Air Lines Inc. 11,721,230 665,180
Johnson Controls
International plc 15,657,007 646,791
Ingersoll-Rand plc 4,744,587 600,997
Cummins Inc. 2,852,026 488,666
7
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
PACCAR Inc. 6,815,031 488,365
Southwest Airlines Co. 9,614,981 488,249
Fortive Corp. 5,804,352 473,171
Verisk Analytics Inc.
Class A 3,219,718 471,560* TransDigm Group Inc. 962,484 465,650* IHS Markit Ltd. 7,160,770 456,284
Harris Corp. 2,331,607 440,977
Stanley Black & Decker
Inc. 2,980,674 431,035
Parker-Hannifin Corp. 2,525,223 429,313
AMETEK Inc. 4,484,843 407,403
Cintas Corp. 1,667,371 395,651
L3 Technologies Inc. 1,559,616 382,371
Rockwell Automation
Inc. 2,328,013 381,398* United Continental
Holdings Inc. 4,347,237 380,601
Republic Services Inc.
Class A 4,241,245 367,462
Fastenal Co. 11,265,616 367,146
Equifax Inc. 2,378,398 321,655* Copart Inc. 3,968,629 296,615
Xylem Inc. 3,541,775 296,234
Dover Corp. 2,860,734 286,646
Expeditors International
of Washington Inc. 3,385,692 256,839
American Airlines
Group Inc. 7,793,117 254,134
Textron Inc. 4,581,621 243,009
Kansas City Southern 1,979,149 241,100
WW Grainger Inc. 884,019 237,120^ Wabtec Corp. 3,184,357 228,509
CH Robinson
Worldwide Inc. 2,688,211 226,751
Masco Corp. 5,772,145 226,499* United Rentals Inc. 1,547,638 205,263
Allegion plc 1,848,979 204,405
Arconic Inc. 7,859,582 202,934
Jacobs Engineering
Group Inc. 2,258,730 190,614
Huntington Ingalls
Industries Inc. 818,006 183,839
Snap-on Inc. 1,089,162 180,409
Nielsen Holdings plc 6,998,044 158,156
Fortune Brands Home
& Security Inc. 2,752,919 157,274
JB Hunt Transport
Services Inc. 1,712,490 156,539
Alaska Air Group Inc. 2,431,254 155,381
Flowserve Corp. 2,581,394 136,014
Robert Half
International Inc. 2,329,556 132,808
AO Smith Corp. 2,774,361 130,839
Pentair plc 3,112,888 115,799
Quanta Services Inc. 2,796,723 106,807
Rollins Inc. 2,901,496 104,077
45,075,388
Information Technology (21.4%)
Microsoft Corp. 150,793,803 20,200,338
Apple Inc. 86,017,198 17,024,524
Visa Inc. Class A 34,221,069 5,939,067
Mastercard Inc.
Class A 17,686,575 4,678,630
Cisco Systems Inc. 84,243,219 4,610,631
Intel Corp. 88,102,216 4,217,453* Adobe Inc. 9,602,354 2,829,334
Oracle Corp. 47,750,680 2,720,356* PayPal Holdings Inc. 23,121,287 2,646,463
International Business
Machines Corp. 17,448,354 2,406,128
Accenture plc Class A 12,551,668 2,319,172* salesforce.com Inc. 15,281,141 2,318,608
Broadcom Inc. 7,789,678 2,242,337
Texas Instruments Inc. 18,462,509 2,118,758
NVIDIA Corp. 11,983,678 1,968,079
QUALCOMM Inc. 23,922,053 1,819,751
Automatic Data
Processing Inc. 8,565,272 1,416,096
Intuit Inc. 5,101,850 1,333,266* Micron Technology Inc. 21,775,172 840,304
Applied Materials Inc. 18,419,378 827,214
Analog Devices Inc. 7,275,892 821,230
Fidelity National
Information Services
Inc. 6,372,028 781,720
Cognizant Technology
Solutions Corp.
Class A 11,201,158 710,041* Autodesk Inc. 4,321,325 703,944* Fiserv Inc. 7,721,649 703,906* Red Hat Inc. 3,497,415 656,675
TE Connectivity Ltd. 6,627,618 634,793
HP Inc. 29,635,499 616,122
Xilinx Inc. 4,995,835 589,109
Amphenol Corp.
Class A 5,877,238 563,862
Lam Research Corp. 2,949,564 554,046
Motorola Solutions Inc. 3,242,011 540,541* Advanced Micro
Devices Inc. 17,448,186 529,901
Paychex Inc. 6,292,877 517,841
Corning Inc. 15,438,267 513,014
Global Payments Inc. 3,082,510 493,602* FleetCor
Technologies Inc. 1,695,508 476,183* VeriSign Inc. 2,063,184 431,536
8
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Total System
Services Inc. 3,202,602 410,798^ Microchip Technology
Inc. 4,683,498 406,059
Hewlett Packard
Enterprise Co. 26,340,079 393,784* Cadence Design
Systems Inc. 5,532,182 391,734* Synopsys Inc. 2,948,563 379,451
KLA-Tencor Corp. 3,181,451 376,048* ANSYS Inc. 1,652,090 338,381* Keysight Technologies
Inc. 3,704,004 332,657
Maxim Integrated
Products Inc. 5,360,882 320,688
NetApp Inc. 4,861,383 299,947
Broadridge Financial
Solutions Inc. 2,286,250 291,908
DXC Technology Co. 5,280,615 291,226* Gartner Inc. 1,773,429 285,416
Western Digital Corp. 5,767,114 274,226* Arista Networks Inc. 1,040,675 270,180
Symantec Corp. 12,169,023 264,798
Skyworks Solutions Inc. 3,399,385 262,670* Akamai Technologies
Inc. 3,230,128 258,862
Citrix Systems Inc. 2,462,162 241,637
Seagate Technology plc 4,959,189 233,677* Fortinet Inc. 2,857,219 219,520
Jack Henry &
Associates Inc. 1,519,752 203,525
Juniper Networks Inc. 6,778,114 180,501* F5 Networks Inc. 1,175,097 171,129
Western Union Co. 8,478,898 168,645* Qorvo Inc. 2,345,534 156,236
FLIR Systems Inc. 2,665,846 144,222
Xerox Corp. 3,846,634 136,209
Alliance Data Systems
Corp. 886,905 124,282* IPG Photonics Corp. 700,862 108,108
103,251,099
Materials (2.8%)
Linde plc 10,680,871 2,144,719
DuPont de Nemours Inc. 14,735,261 1,106,176
Ecolab Inc. 4,991,279 985,478
Air Products &
Chemicals Inc. 4,331,600 980,544
Sherwin-Williams Co. 1,598,568 732,608
Dow Inc. 14,732,859 726,477
Newmont Goldcorp
Corp. 16,125,802 620,360
PPG Industries Inc. 4,644,796 542,094
LyondellBasell
Industries NV Class A 5,973,851 514,528
Ball Corp. 6,589,148 461,174* Corteva Inc. 14,729,250 435,544^ Amcor plc 31,949,852 367,104
Vulcan Materials Co. 2,600,147 357,026
International Paper Co. 7,813,908 338,499
Freeport-McMoRan
Inc. 28,555,031 331,524
Nucor Corp. 5,999,496 330,572^ International Flavors
& Fragrances Inc. 1,995,094 289,468
Martin Marietta
Materials Inc. 1,229,848 283,000
Celanese Corp. Class A 2,492,233 268,663
FMC Corp. 2,591,686 214,980
Eastman Chemical Co. 2,727,860 212,309
CF Industries
Holdings Inc. 4,351,790 203,272
Avery Dennison Corp. 1,661,673 192,222
Westrock Co. 5,059,519 184,521
Packaging Corp. of
America 1,859,984 177,294
Mosaic Co. 6,986,119 174,863
Albemarle Corp. 2,085,708 146,855
Sealed Air Corp. 3,064,814 131,113
13,452,987
Real Estate (3.1%)
American Tower Corp. 8,697,834 1,778,272
Crown Castle
International Corp. 8,181,206 1,066,420
Prologis Inc. 12,412,564 994,246
Simon Property Group
Inc. 6,080,253 971,381
Equinix Inc. 1,654,502 834,349
Public Storage 2,953,015 703,320
Welltower Inc. 7,967,118 649,559
AvalonBay
Communities Inc. 2,741,976 557,115
Equity Residential 7,286,814 553,215* SBA Communications
Corp. Class A 2,229,272 501,229
Ventas Inc. 7,271,522 497,009
Digital Realty Trust Inc. 4,099,861 482,923
Realty Income Corp. 6,196,869 427,398
Boston Properties Inc. 3,041,423 392,344
Weyerhaeuser Co. 14,660,295 386,152
Essex Property Trust
Inc. 1,293,507 377,613* CBRE Group Inc.
Class A 6,155,620 315,783
Alexandria Real Estate
Equities Inc. 2,223,012 313,645
HCP Inc. 9,408,959 300,898
Extra Space Storage Inc. 2,508,867 266,191
9
500 Index Fund
Market
Value•
Shares ($000)
Market
Value•
Shares ($000)
Host Hotels &
Resorts Inc. 14,583,402 265,710
Mid-America Apartment
Communities Inc. 2,243,900 264,242
UDR Inc. 5,546,829 248,997
Duke Realty Corp. 7,074,748 223,633
Regency Centers Corp. 3,284,606 219,215
Vornado Realty Trust 3,416,982 219,029
Federal Realty
Investment Trust 1,474,483 189,854
Iron Mountain Inc. 5,647,359 176,762
Kimco Realty Corp. 8,308,037 153,532
Apartment Investment
& Management Co. 2,929,544 146,829
SL Green Realty Corp. 1,659,889 133,405
Macerich Co. 2,079,341 69,637
14,679,907
Utilities (3.3%)
NextEra Energy Inc. 9,423,754 1,930,550
Duke Energy Corp. 14,327,151 1,264,228
Dominion Energy Inc. 15,789,599 1,220,852
Southern Co. 20,482,043 1,132,247
Exelon Corp. 19,105,390 915,912
American Electric
Power Co. Inc. 9,709,203 854,507
Sempra Energy 5,398,781 742,009
Xcel Energy Inc. 10,125,041 602,339
Public Service
Enterprise Group Inc. 9,943,848 584,897
Consolidated Edison Inc. 6,435,165 564,235
WEC Energy Group Inc. 6,205,611 517,362
Eversource Energy 6,316,814 478,562
DTE Energy Co. 3,603,982 460,877
PPL Corp. 14,207,303 440,569
Edison International 6,413,147 432,310
FirstEnergy Corp. 9,938,295 425,458
American Water
Works Co. Inc. 3,550,589 411,868
Entergy Corp. 3,735,934 384,540
Ameren Corp. 4,834,362 363,109
CMS Energy Corp. 5,585,889 323,479
Evergy Inc. 4,804,179 288,971
CenterPoint Energy Inc. 9,885,306 283,016
Atmos Energy Corp. 2,302,833 243,087
Alliant Energy Corp. 4,651,790 228,310
AES Corp. 13,064,960 218,969
NiSource Inc. 7,344,356 211,517
Pinnacle West Capital
Corp. 2,210,278 207,965
NRG Energy Inc. 5,258,647 184,684
15,916,429
Total Common Stocks
(Cost $306,905,649) 480,560,193
Temporary Cash Investments (0.6%)1
Money Market Fund (0.6%) 2,3 Vanguard Market
Liquidity Fund,
2.499% 27,919,525 2,792,511
Face
Amount
($000)
U.S. Government and Agency Obligations (0.0%)
United States Treasury Bill,
2.385%, 8/1/19 15,000 14,9744 United States Treasury Bill,
2.349%, 8/15/19 50,000 49,8714 United States Treasury Bill,
2.157%, 11/7/19 7,000 6,9484 United States Treasury Bill,
2.275%, 11/29/19 40,000 39,655
111,448
Total Temporary Cash Investments
(Cost $2,903,439) 2,903,959
Total Investments (100.1%)
(Cost $309,809,088) 483,464,152
Amount
($000)
Other Assets and Liabilities (-0.1%)
Other Assets
Investment in Vanguard 22,563
Receivables for Investment Securities Sold 20,802
Receivables for Accrued Income 399,202
Receivables for Capital Shares Issued 550,463
Variation Margin Receivable—Futures
Contracts 9,767
Unrealized Appreciation—OTC Swap
Contracts 3,696
Other Assets 2,560
Total Other Assets 1,009,053
Liabilities
Payables for Investment Securities
Purchased (187,725)
Collateral for Securities on Loan (194,262)
Payables for Capital Shares Redeemed (240,303)
Payables for Distributions (595,471)
Payables to Vanguard (84,318)
Total Liabilities (1,302,079)
Net Assets (100%) 483,171,126
10
500 Index Fund
At June 30, 2019, net assets consisted of:
Amount
($000)
Paid-in Capital 311,786,040
Total Distributable Earnings (Loss) 171,385,086
Net Assets 483,171,126
Investor Shares—Net Assets
Applicable to 83,799,111 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 22,744,062
Net Asset Value Per Share—
Investor Shares $271.41
ETF Shares—Net Assets
Applicable to 426,839,855 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 114,960,191
Net Asset Value Per Share—
ETF Shares $269.33
Admiral Shares—Net Assets
Applicable to 1,015,712,676 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 275,658,516
Net Asset Value Per Share—
Admiral Shares $271.39
Amount
($000)
Institutional Select Shares—Net Assets
Applicable to 485,427,541 outstanding
$.001 par value shares of beneficial
interest (unlimited authorization) 69,808,357
Net Asset Value Per Share—
Institutional Select Shares $143.81
• See Note A in Notes to Financial Statements.
* Non-income-producing security.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $189,208,000.
1 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts and swap contracts. After giving effect to futures and swap investments, the fund’s effective common stock and temporary cash investment positions represent 100.0% and 0.1%, respectively, of net assets.
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 Includes $194,262,000 of collateral received for securities on loan.
4 Securities with a value of $95,327,000 have been segregated as initial margin for open futures contracts.
OTC—Over-the-Counter.
11
500 Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
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
E-mini S&P 500 Index September 2019 15,880 2,337,695 35,890
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)
Assurant Inc. 2/4/20 GSI 5,872 (2.590) 8 —
First Republic Bank 2/4/20 GSI 71,453 (3.020) 1,731 —
UnitedHealth Group Inc. 9/4/19 BOANA 55,614 (2.881) 650 —
UnitedHealth Group Inc. 9/4/19 BOANA 111,228 (2.780) 1,307 —
3,696 —
1 Payment received/paid monthly.
BOANA—Bank of America NA.
GSI—Goldman Sachs International.
At June 30, 2019, a counterparty had deposited in segregated accounts securities with a value of
$601,000 and cash of $2,560,000 in connection with open swap contracts.
12
Six Months Ended
June 30, 2019
($000)
Investment Income
Income
Dividends 4,535,368
Interest1 23,457
Securities Lending—Net 7,160
Total Income 4,565,985
Expenses
The Vanguard Group—Note B
Investment Advisory Services 5,548
Management and Administrative—Investor Shares 15,478
Management and Administrative—ETF Shares 10,897
Management and Administrative—Admiral Shares 42,046
Management and Administrative—Institutional Select Shares 2,259
Marketing and Distribution—Investor Shares 1,043
Marketing and Distribution—ETF Shares 2,643
Marketing and Distribution—Admiral Shares 5,101
Marketing and Distribution—Institutional Select Shares 2
Custodian Fees 810
Shareholders’ Reports—Investor Shares 161
Shareholders’ Reports—ETF Shares 694
Shareholders’ Reports—Admiral Shares 652
Shareholders’ Reports—Institutional Select Shares —
Trustees’ Fees and Expenses 109
Total Expenses 87,443
Net Investment Income 4,478,542
Realized Net Gain (Loss)
Investment Securities Sold1,2 4,294,154
Futures Contracts 235,939
Swap Contracts 6,746
Realized Net Gain (Loss) 4,536,839
Change in Unrealized Appreciation (Depreciation)
Investment Securities1 65,562,020
Futures Contracts 100,737
Swap Contracts 3,696
Change in Unrealized Appreciation (Depreciation) 65,666,453
Net Increase (Decrease) in Net Assets Resulting from Operations 74,681,834
1 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $22,113,000, ($55,000), and $309,000, respectively. Purchases and sales are for temporary cash investment purposes.
2 Includes $5,928,499,000 of net gain (loss) resulting from in-kind redemptions; such gain (loss) is not taxable to the fund.
Statement of Operations
500 Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
13
Statement of Changes in Net Assets
500 Index Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Six Months Ended Year Ended
June 30, December 31,
2019 2018
($000) ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income 4,478,542 8,659,224
Realized Net Gain (Loss) 4,536,839 14,303,086
Change in Unrealized Appreciation (Depreciation) 65,666,453 (43,378,031)
Net Increase (Decrease) in Net Assets Resulting from Operations 74,681,834 (20,415,721)
Distributions
Net Investment Income
Investor Shares (245,334) (474,872)
ETF Shares (1,199,785) (1,812,323)
Admiral Shares (2,856,923) (4,653,557)
Institutional Select Shares (716,789) (1,066,831)
Realized Capital Gain
Investor Shares — —
ETF Shares — —
Admiral Shares — —
Institutional Select Shares — —
Total Distributions (5,018,831) (8,007,583)
Capital Share Transactions
Investor Shares (4,268,167) (3,019,824)
ETF Shares 8,296,716 14,094,239
Admiral Shares 5,328,802 10,715,967
Institutional Select Shares 3,443,423 15,905,665
Net Increase (Decrease) from Capital Share Transactions 12,800,774 37,696,047
Total Increase (Decrease) 82,463,777 9,272,743
Net Assets
Beginning of Period 400,707,349 391,434,606
End of Period 483,171,126 400,707,349
14
Investor Shares
Six Months
Ended
For a Share Outstanding June 30, Year Ended December 31,
Throughout Each Period 2019 2018 2017 2016 2015 2014
Net Asset Value, Beginning of Period $231.44 $246.82 $206.57 $188.48 $189.89 $170.36
Investment Operations
Net Investment Income 2.4151 4.8961 4.2211 3.997 3.775 3.326
Net Realized and Unrealized Gain (Loss)
on Investments 40.253 (15.776) 40.205 18.069 (1.438) 19.507
Total from Investment Operations 42.668 (10.880) 44.426 22.066 2.337 22.833
Distributions
Dividends from Net Investment Income (2.698) (4.500) (4.176) (3.976) (3.747) (3.303)
Distributions from Realized Capital Gains — — — — — —
Total Distributions (2.698) (4.500) (4.176) (3.976) (3.747) (3.303)
Net Asset Value, End of Period $271.41 $231.44 $246.82 $206.57 $188.48 $189.89
Total Return2 18.47% -4.52% 21.67% 11.82% 1.25% 13.51%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $22,744 $23,162 $27,656 $26,652 $26,092 $28,040
Ratio of Total Expenses to
Average Net Assets 0.14% 0.14% 0.14% 0.14% 0.16% 0.17%
Ratio of Net Investment Income to
Average Net Assets 1.91% 1.95% 1.87% 2.05% 2.00% 1.88%
Portfolio Turnover Rate3 4% 4% 3% 4% 3% 3%
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 Excludes 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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
500 Index Fund
15
ETF Shares
Six Months
Ended
For a Share Outstanding June 30, Year Ended December 31,
Throughout Each Period 2019 2018 2017 2016 2015 2014
Net Asset Value, Beginning of Period $229.68 $244.94 $205.00 $187.05 $188.45 $169.07
Investment Operations
Net Investment Income 2.5471 5.1961 4.4341 4.155 3.958 3.518
Net Realized and Unrealized Gain (Loss)
on Investments 39.944 (15.719) 39.874 17.933 (1.427) 19.352
Total from Investment Operations 42.491 (10.523) 44.308 22.088 2.531 22.870
Distributions
Dividends from Net Investment Income (2.841) (4.737) (4.368) (4.138) (3.931) (3.490)
Distributions from Realized Capital Gains — — — — — —
Total Distributions (2.841) (4.737) (4.368) (4.138) (3.931) (3.490)
Net Asset Value, End of Period $269.33 $229.68 $244.94 $205.00 $187.05 $188.45
Total Return 18.53% -4.42% 21.78% 11.93% 1.35% 13.63%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $114,960 $90,639 $83,640 $56,648 $40,440 $27,630
Ratio of Total Expenses to
Average Net Assets 0.03% 0.03% 0.04% 0.04% 0.05% 0.05%
Ratio of Net Investment Income to
Average Net Assets 2.02% 2.06% 1.97% 2.15% 2.11% 2.00%
Portfolio Turnover Rate2 4% 4% 3% 4% 3% 3%
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 Excludes 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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
500 Index Fund
16
Admiral Shares
Six Months
Ended
For a Share Outstanding June 30, Year Ended December 31,
Throughout Each Period 2019 2018 2017 2016 2015 2014
Net Asset Value, Beginning of Period $231.44 $246.82 $206.57 $188.48 $189.89 $170.36
Investment Operations
Net Investment Income 2.5551 5.1811 4.4581 4.185 3.990 3.544
Net Realized and Unrealized Gain (Loss)
on Investments 40.240 (15.808) 40.193 18.074 (1.439) 19.503
Total from Investment Operations 42.795 (10.627) 44.651 22.259 2.551 23.047
Distributions
Dividends from Net Investment Income (2.845) (4.753) (4.401) (4.169) (3.961) (3.517)
Distributions from Realized Capital Gains — — — — — —
Total Distributions (2.845) (4.753) (4.401) (4.169) (3.961) (3.517)
Net Asset Value, End of Period $271.39 $231.44 $246.82 $206.57 $188.48 $189.89
Total Return2 18.53% -4.43% 21.79% 11.93% 1.36% 13.64%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $275,659 $230,375 $235,232 $181,513 $152,740 $143,043
Ratio of Total Expenses to
Average Net Assets 0.04% 0.04% 0.04% 0.04% 0.05% 0.05%
Ratio of Net Investment Income to
Average Net Assets 2.01% 2.05% 1.97% 2.15% 2.11% 2.00%
Portfolio Turnover Rate3 4% 4% 3% 4% 3% 3%
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 Excludes 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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
500 Index Fund
17
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
500 Index Fund
Institutional Select Shares
Six Months June 24,
Ended Year Ended 20161 to
June 30, December 31, Dec. 31,
For a Share Outstanding Throughout Each Period 2019 2018 2017 2016
Net Asset Value, Beginning of Period $122.64 $130.79 $109.45 $99.57
Investment Operations
Net Investment Income 1.3742 2.8082 2.4232 1.200
Net Realized and Unrealized Gain (Loss) on Investments 21.325 (8.400) 21.283 9.859
Total from Investment Operations 22.699 (5.592) 23.706 11.059
Distributions
Dividends from Net Investment Income (1.529) (2.558) (2.366) (1.179)
Distributions from Realized Capital Gains — — — —
Total Distributions (1.529) (2.558) (2.366) (1.179)
Net Asset Value, End of Period $143.81 $122.64 $130.79 $109.45
Total Return 18.55% -4.40% 21.83% 11.12%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $69,808 $56,531 $44,907 $17,753
Ratio of Total Expenses to Average Net Assets 0.01% 0.01% 0.01% 0.01%3
Ratio of Net Investment Income to Average Net Assets 2.04% 2.08% 2.00% 2.26%3
Portfolio Turnover Rate4 4% 4% 3% 4%5
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Inception.
2 Calculated based on average shares outstanding.
3 Annualized.
4 Excludes 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.
5 Reflects the fund’s portfolio turnover for the fiscal year ended December 31, 2016.
18
Notes to Financial Statements
500 Index Fund
Vanguard 500 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 Select 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.
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).
During the six months ended June 30, 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.
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
19
500 Index Fund
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 June 30, 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 (December 31, 2015–2018), and for the period ended
June 30, 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. 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
20
500 Index Fund
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 June 30, 2019, or at any time during the period
then ended.
8. 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
21
500 Index Fund
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 June 30, 2019, the fund had contributed to Vanguard capital in the amount of
$22,563,000, representing 0.00% of the fund’s net assets and 9.02% 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 as of June 30, 2019,
based on the inputs used to value them:
Level 1 Level 2 Level 3
Investments ($000) ($000) ($000)
Common Stocks 480,560,193 — —
Temporary Cash Investments 2,792,511 111,448 —
Futures Contracts—Assets1 9,767 — —
Swap Contracts—Assets — 3,696 —
Total 483,362,471 115,144 —
1 Represents variation margin on the last day of the reporting period.
D. As of June 30, 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 309,809,088
Gross Unrealized Appreciation 189,036,259
Gross Unrealized Depreciation (15,341,609)
Net Unrealized Appreciation (Depreciation) 173,694,650
The fund’s tax-basis capital gains and losses are determined only at the end of each fiscal year. For
tax purposes, at December 31, 2018, the fund had available capital losses totaling $996,573,000
that may be carried forward indefinitely to offset future net capital gains. The fund will use these
22
500 Index Fund
capital losses to offset net taxable capital gains, if any, realized during the year ending December 31,
2019; 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 June 30, 2019, the fund purchased $28,234,772,000 of
investment securities and sold $16,093,168,000 of investment securities, other than temporary
cash investments. Purchases and sales include $15,542,497,000 and $8,161,469,000, respectively,
in connection with in-kind purchases and redemptions of the fund’s capital shares.
F. Capital share transactions for each class of shares were:
Six Months Ended Year Ended
June 30, 2019 December 31, 2018
Amount Shares Amount Shares
($000) (000) ($000) (000)
Investor Shares
Issued 665,513 2,583 3,739,073 14,707
Issued in Lieu of Cash Distributions 229,157 868 444,813 1,788
Redeemed1 (5,162,837) (19,730) (7,203,710) (28,466)
Net Increase (Decrease)—Investor Shares (4,268,167) (16,279) (3,019,824) (11,971)
ETF Shares
Issued 16,365,533 63,432 33,022,329 130,065
Issued in Lieu of Cash Distributions — — — —
Redeemed (8,068,817) (31,225) (18,928,090) (76,900)
Net Increase (Decrease)—ETF Shares 8,296,716 32,207 14,094,239 53,165
Admiral Shares
Issued1 19,489,908 75,290 40,632,052 160,485
Issued in Lieu of Cash Distributions 2,515,810 9,511 4,116,552 16,541
Redeemed (16,676,916) (64,496) (34,032,637) (134,667)
Net Increase (Decrease)—Admiral Shares 5,328,802 20,305 10,715,967 42,359
Institutional Select Shares
Issued 4,089,427 29,239 19,415,700 143,348
Issued in Lieu of Cash Distributions 716,789 5,114 1,066,831 8,093
Redeemed (1,362,793) (9,889) (4,576,866) (33,838)
Net Increase (Decrease)—Institutional Select Shares 3,443,423 24,464 15,905,665 117,603
1 In 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 $3,431,485,000 from the conversion during the six months ended June 30, 2019.
G. Management has determined that no events or transactions occurred subsequent to June 30,
2019, that would require recognition or disclosure in these financial statements.
23
The board of trustees of Vanguard 500 Index Fund has renewed the fund’s investment advisory
arrangement with The Vanguard Group, Inc. (Vanguard), through its Equity Index 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 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 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.
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 short- and long-term performance of the fund, including any periods of
outperformance or underperformance compared with its target index and peer group. The board
concluded that the performance was such that the advisory arrangement should continue.
Trustees Approve Advisory Arrangement
24
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.
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P.O. Box 2600Valley 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 PeopleWho Are Deaf or Hard of Hearing > 800-749-7273
This material may be used in conjunctionwith the offering of shares of any Vanguardfund only if preceded or accompanied bythe fund’s current prospectus.
You can obtain a free copy of Vanguard’s proxy votingguidelines by visiting vanguard.com/proxyreporting or bycalling Vanguard at 800-662-2739. The guidelines arealso available from the SEC’s website, sec.gov. Inaddition, you may obtain a free report on how your fundvoted the proxies for securities it owned during the 12months ended June 30. To get the report, visit eithervanguard.com/proxyreporting or sec.gov.
You can review information about your fund on theSEC’s website, and you can receive copies of thisinformation, for a fee, by sending a request via emailaddressed 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.
Q402 082019
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