Vanguard Trustees Equity Fund
07/01/2026 | Press release | Distributed by Public on 07/01/2026 07:52
Semi-Annual Report by Investment Company (Form N-CSRS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-02968-99
| Name of Registrant: | Vanguard Trustees' Equity Fund | |
| Address of Registrant: | P.O. Box 2600 | |
| Valley Forge, PA 19482 |
| Name and address of agent for service: | Natalie Lamarque, Esquire | |
| P.O. Box 876 | ||
| Valley Forge, PA 19482 |
Registrant's telephone number, including area code: (610) 669-1000
Date of fiscal year end: October 31
Date of reporting period: November 1, 2025-April 30, 2026
Item 1: Reports to Shareholders.
TABLE OF CONTENTS
|
Vanguard International Value Fund |
|
|
Vanguard Diversified Equity Fund |
|
Vanguard International Value Fund
Investor Shares (VTRIX)
Semi-Annual Shareholder Report | April 30, 2026
This semi-annual shareholder report contains important information about Vanguard International Value Fund (the "Fund") for the period of November 1, 2025, to April 30, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last six months?
(based on a hypothetical $10,000 investment)
| Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Investor Shares | $18 | 0.34%1 |
|
1
|
Annualized.
|
|
Fund Statistics (as of April 30, 2026) |
|
|
Fund Net Assets (in millions) |
$11,322 |
| Number of Portfolio Holdings | 194 |
| Portfolio Turnover Rate | 23% |
|
Portfolio Composition % of Net Assets (as of April 30, 2026) |
|
| Asia | 35.4% |
| Europe | 47.4% |
| North America | 9.3% |
| Oceania | 1.4% |
| South America | 1.8% |
| Other Assets and Liabilities-Net | 4.7% |
| This table reflects the Fund's investments, including short-term investments, derivatives and other assets and liabilities. | |
How has the Fund changed?
Effective January 12, 2026, The Vanguard Group, Inc. exercises portfolio management responsibilities through its wholly-owned subsidiaries, Vanguard Capital Management, LLC and Vanguard Portfolio Management, LLC.
This is a summary of certain changes to the Fund since October 31, 2025. For more complete information, you may review the Fund's prospectus at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard ® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing • 800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
SR46
Vanguard Diversified Equity Fund
Investor Shares (VDEQX)
Semi-Annual Shareholder Report | April 30, 2026
This semi-annual shareholder report contains important information about Vanguard Diversified Equity Fund (the "Fund") for the period of November 1, 2025, to April 30, 2026. You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447. The report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last six months?
(based on a hypothetical $10,000 investment)
| Share Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
| Investor Shares | $18 | 0.35%1 |
|
1
|
Annualized.
|
|
Fund Statistics (as of April 30, 2026) |
|
|
Fund Net Assets (in millions) |
$2,927 |
| Number of Portfolio Holdings | 7 |
| Portfolio Turnover Rate | 6% |
|
Portfolio Composition % of Net Assets (as of April 30, 2026) |
|
| Vanguard U.S. Growth Fund Investor Shares | 29.7% |
| Vanguard Growth and Income Fund Investor Shares | 20.1% |
| Vanguard WindsorTM Fund Investor Shares | 20.1% |
| Vanguard Windsor II Fund Investor Shares | 15.1% |
| Vanguard ExplorerTM Fund Investor Shares | 10.3% |
| Vanguard Mid-Cap Growth Fund | 4.8% |
| Other Assets and Liabilities-Net | (0.1%) |
| This table reflects the Fund's investments, including short-term investments and other assets and liabilities. | |
How has the Fund changed?
Effective January 12, 2026, The Vanguard Group, Inc. exercises portfolio management responsibilities for the fund through its wholly-owned subsidiary, Vanguard Capital Management, LLC.
This is a summary of certain changes to the Fund since October 31, 2025. For more complete information, you may review the Fund's prospectus at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature or upon request at 800-662-7447.
Where can I find additional information about the Fund?
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard ® • vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing • 800-749-7273
© 2026 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
SR608
Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Investments.
Not applicable. The Trustees' Fees and Expenses for International Value Fund are included in the financial statements filed under Item 7 of this Form, and those of the Diversified Equity Fund are borne by the underlying Vanguard funds in which the fund of the Registrant invests.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Financial Statements
For the six-months ended April 30, 2026
Vanguard International Value Fund
Contents
|
Financial Statements
|
1 |
International Value Fund
Financial Statements (unaudited)
Schedule of Investments
As of April 30, 2026
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 (94.7%) | ||||||
| Australia (1.4%) | ||||||
| Macquarie Group Ltd. | 589,457 | 101,264 | ||||
| QBE Insurance Group Ltd. | 3,458,118 | 56,014 | ||||
| 157,278 | ||||||
| Belgium (0.2%) | ||||||
| KBC Group NV | 210,562 | 28,025 | ||||
| Brazil (1.8%) | ||||||
| Lojas Renner SA | 22,173,690 | 60,899 | ||||
| Banco Bradesco SA ADR | 9,241,852 | 35,858 | ||||
| Banco do Brasil SA | 7,465,538 | 33,485 | ||||
| Ambev SA | 11,071,849 | 32,443 | ||||
| Itau Unibanco Holding SA ADR | 3,294,779 | 28,665 | ||||
| XP Inc. Class A | 515,688 | 9,881 | ||||
| 201,231 | ||||||
| Canada (2.7%) | ||||||
| Magna International Inc. | 1,257,361 | 80,023 | ||||
| Canadian National Railway Co. | 596,900 | 67,044 | ||||
| EQB Inc. | 496,700 | 45,079 | ||||
| North West Co. Inc. | 1,105,311 | 41,402 | ||||
| Agnico Eagle Mines Ltd. | 149,602 | 28,157 | ||||
| Intact Financial Corp. | 145,723 | 28,079 | ||||
| * | CAE Inc. | 763,976 | 19,966 | |||
| 309,750 | ||||||
| China (4.5%) | ||||||
| Tencent Holdings Ltd. | 1,410,365 | 85,655 | ||||
| Li Ning Co. Ltd. | 25,666,000 | 66,821 | ||||
| Ping An Insurance Group Co. of China Ltd. Class H | 6,713,500 | 54,568 | ||||
| Alibaba Group Holding Ltd. | 3,125,769 | 51,516 | ||||
| China Merchants Bank Co. Ltd. Class H | 6,953,500 | 42,086 | ||||
| NetEase Inc. | 1,723,296 | 40,341 | ||||
| Shenzhou International Group Holdings Ltd. | 5,516,400 | 33,625 | ||||
| Yum China Holdings Inc. | 679,630 | 32,928 | ||||
| Kweichow Moutai Co. Ltd. Class A | 162,159 | 32,868 | ||||
| Shandong Weigao Group Medical Polymer Co. Ltd. Class H | 66,429,760 | 29,277 | ||||
| China Resources Power Holdings Co. Ltd. | 8,668,000 | 21,375 | ||||
| China Overseas Land & Investment Ltd. | 11,346,633 | 19,490 | ||||
| 510,550 | ||||||
| Denmark (1.2%) | ||||||
| Novo Nordisk A/S Class B | 3,120,063 | 132,715 | ||||
| Finland (2.3%) | ||||||
| Nokia OYJ | 15,358,019 | 195,148 | ||||
| Nokia OYJ ADR | 4,674,690 | 60,350 | ||||
| 255,498 | ||||||
| France (10.4%) | ||||||
| STMicroelectronics NV | 4,781,361 | 260,470 | ||||
| TotalEnergies SE | 1,952,558 | 181,536 | ||||
| Kering SA | 554,241 | 152,479 | ||||
| Pernod Ricard SA | 1,385,772 | 103,021 | ||||
| LVMH Moet Hennessy Louis Vuitton SE | 174,362 | 93,146 | ||||
| Sanofi SA | 815,669 | 76,327 | ||||
| Bureau Veritas SA | 2,270,283 | 69,569 | ||||
| Cie Generale des Etablissements Michelin SCA | 1,787,732 | 64,763 | ||||
| 1 | Euronext NV | 265,499 | 44,442 | |||
| Societe Generale SA | 446,356 | 35,932 | ||||
| ArcelorMittal SA | 603,379 | 35,029 | ||||
| Danone SA | 428,200 | 33,549 | ||||
1
International Value Fund
| Shares |
Market Value• ($000) |
|||||
| Capgemini SE | 211,446 | 25,715 | ||||
| 1,175,978 | ||||||
| Germany (6.8%) | ||||||
| Infineon Technologies AG | 1,424,150 | 95,782 | ||||
| Deutsche Boerse AG | 308,741 | 94,721 | ||||
| BASF SE | 1,333,539 | 85,529 | ||||
| Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered) | 133,670 | 79,958 | ||||
| adidas AG | 306,188 | 52,988 | ||||
| Bayerische Motoren Werke AG | 498,391 | 45,609 | ||||
| Henkel AG & Co. KGaA | 574,460 | 39,589 | ||||
| Deutsche Post AG | 645,376 | 38,216 | ||||
| GEA Group AG | 552,386 | 37,773 | ||||
| Siemens AG (Registered) | 125,017 | 37,150 | ||||
| Merck KGaA | 282,213 | 36,543 | ||||
| * | Continental AG | 474,720 | 35,919 | |||
| Bayer AG (Registered) | 712,798 | 31,960 | ||||
| Daimler Truck Holding AG | 568,355 | 28,667 | ||||
| 1 | Siemens Healthineers AG | 585,655 | 24,014 | |||
| 764,418 | ||||||
| Hong Kong (4.0%) | ||||||
| AIA Group Ltd. | 9,476,179 | 104,037 | ||||
| Techtronic Industries Co. Ltd. | 5,956,803 | 86,372 | ||||
| Jardine Matheson Holdings Ltd. | 1,110,270 | 75,690 | ||||
| Sands China Ltd. | 32,006,400 | 67,154 | ||||
| Sun Hung Kai Properties Ltd. | 3,034,000 | 53,116 | ||||
| CK Asset Holdings Ltd. | 5,867,500 | 36,961 | ||||
| Galaxy Entertainment Group Ltd. | 7,782,000 | 33,201 | ||||
| 456,531 | ||||||
| India (2.4%) | ||||||
| UPL Ltd. | 10,078,670 | 68,572 | ||||
| HDFC Bank Ltd. ADR | 2,243,063 | 56,996 | ||||
| Tata Consultancy Services Ltd. | 2,120,852 | 55,656 | ||||
| HDFC Bank Ltd. | 5,472,142 | 44,757 | ||||
| Adani Ports & Special Economic Zone Ltd. | 1,969,398 | 34,604 | ||||
| * | AWL Agri Business Ltd. | 6,408,501 | 13,312 | |||
| 273,897 | ||||||
| Indonesia (1.7%) | ||||||
| Bank Mandiri Persero Tbk. PT | 231,908,206 | 59,010 | ||||
| Bank Rakyat Indonesia Persero Tbk. PT | 265,397,700 | 45,912 | ||||
| Astra International Tbk. PT | 95,684,576 | 33,149 | ||||
| Bank Central Asia Tbk. PT | 89,102,000 | 30,209 | ||||
| Selamat Sempurna Tbk. PT | 175,810,416 | 18,286 | ||||
| 186,566 | ||||||
| Ireland (2.2%) | ||||||
| Kingspan Group plc | 974,422 | 90,157 | ||||
| Ryanair Holdings plc ADR | 992,954 | 54,265 | ||||
| Bank of Ireland Group plc | 2,032,601 | 40,037 | ||||
| Kerry Group plc Class A | 460,711 | 39,045 | ||||
| CRH plc | 232,403 | 27,521 | ||||
| 251,025 | ||||||
| Israel (0.4%) | ||||||
| * | Check Point Software Technologies Ltd. | 449,588 | 50,565 | |||
| Italy (2.6%) | ||||||
| FinecoBank Banca Fineco SpA | 4,941,751 | 122,682 | ||||
| Saipem SpA | 11,099,634 | 60,138 | ||||
| Banca Monte dei Paschi di Siena SpA | 4,027,587 | 42,933 | ||||
| Intesa Sanpaolo SpA | 5,621,901 | 38,196 | ||||
| Brembo NV | 3,165,983 | 29,835 | ||||
| 293,784 | ||||||
| Japan (13.1%) | ||||||
| * | Nidec Corp. | 12,569,000 | 193,610 | |||
| Murata Manufacturing Co. Ltd. | 5,126,921 | 170,030 | ||||
| Sumitomo Mitsui Trust Group Inc. | 3,420,732 | 114,366 | ||||
| Kubota Corp. | 6,622,432 | 108,108 | ||||
| SoftBank Group Corp. | 2,992,100 | 102,207 | ||||
| Shin-Etsu Chemical Co. Ltd. | 2,209,100 | 101,712 | ||||
2
International Value Fund
| Shares |
Market Value• ($000) |
|||||
| Suzuki Motor Corp. | 6,282,314 | 70,258 | ||||
| Daikin Industries Ltd. | 493,320 | 69,704 | ||||
| SMC Corp. | 135,613 | 66,687 | ||||
| Sony Group Corp. | 3,235,685 | 64,828 | ||||
| MISUMI Group Inc. | 2,593,472 | 59,698 | ||||
| Denso Corp. | 3,985,908 | 47,624 | ||||
| Daito Trust Construction Co. Ltd. | 2,073,322 | 46,635 | ||||
| Omron Corp. | 1,208,246 | 43,400 | ||||
| Unicharm Corp. | 6,524,300 | 38,114 | ||||
| Japan Exchange Group Inc. | 2,959,232 | 35,250 | ||||
| Nihon Kohden Corp. | 3,076,800 | 28,658 | ||||
| Seria Co. Ltd. | 1,188,500 | 25,997 | ||||
| Sumitomo Forestry Co. Ltd. | 2,843,200 | 25,694 | ||||
| Nitto Denko Corp. | 1,186,544 | 22,568 | ||||
| Ain Holdings Inc. | 576,100 | 20,888 | ||||
| Olympus Corp. | 1,754,200 | 17,253 | ||||
| Nintendo Co. Ltd. | 246,100 | 12,039 | ||||
| 1,485,328 | ||||||
| Malaysia (0.3%) | ||||||
| Westports Holdings Bhd. | 24,367,000 | 35,002 | ||||
| Mexico (1.8%) | ||||||
| Grupo Financiero Banorte SAB de CV | 8,276,925 | 89,874 | ||||
| Wal-Mart de Mexico SAB de CV | 24,679,710 | 77,804 | ||||
| Fomento Economico Mexicano SAB de CV ADR | 287,525 | 33,997 | ||||
| 201,675 | ||||||
| Netherlands (3.1%) | ||||||
| 1 | ABN AMRO Bank NV | 2,131,996 | 74,229 | |||
| Prosus NV | 1,411,703 | 68,345 | ||||
| Heineken NV | 818,383 | 63,711 | ||||
| Koninklijke Vopak NV | 986,711 | 49,384 | ||||
| Akzo Nobel NV | 790,435 | 46,396 | ||||
| Koninklijke Philips NV | 1,671,173 | 44,082 | ||||
| 346,147 | ||||||
| Norway (1.4%) | ||||||
| Equinor ASA | 1,480,116 | 60,237 | ||||
| DNB Bank ASA | 1,903,730 | 57,651 | ||||
| Bakkafrost P/F | 874,777 | 43,521 | ||||
| 161,409 | ||||||
| Panama (0.7%) | ||||||
| Copa Holdings SA Class A | 686,616 | 79,428 | ||||
| Philippines (0.3%) | ||||||
| Puregold Price Club Inc. | 32,485,576 | 22,729 | ||||
| Universal Robina Corp. | 14,789,340 | 14,692 | ||||
| 37,421 | ||||||
| Singapore (1.3%) | ||||||
| United Overseas Bank Ltd. | 2,250,052 | 64,079 | ||||
| Venture Corp. Ltd. | 3,295,600 | 42,065 | ||||
| Sembcorp Industries Ltd. | 6,714,996 | 35,240 | ||||
| 141,384 | ||||||
| South Korea (5.2%) | ||||||
| Samsung Electronics Co. Ltd. | 2,028,110 | 305,408 | ||||
| 1 | Samsung Electronics Co. Ltd. GDR | 19,822 | 74,984 | |||
| Korea Electric Power Corp. | 2,412,151 | 72,272 | ||||
| LG Chem Ltd. | 154,719 | 41,905 | ||||
| Shinhan Financial Group Co. Ltd. | 558,261 | 37,911 | ||||
| KB Financial Group Inc. | 334,853 | 36,668 | ||||
| Hana Financial Group Inc. | 241,939 | 21,020 | ||||
| 590,168 | ||||||
| Spain (0.9%) | ||||||
| Banco Santander SA | 3,034,848 | 37,032 | ||||
| Bankinter SA | 1,948,020 | 32,417 | ||||
| Banco Bilbao Vizcaya Argentaria SA | 1,459,326 | 32,226 | ||||
| 101,675 | ||||||
| Sweden (1.5%) | ||||||
| Nordea Bank Abp | 4,123,250 | 77,537 | ||||
3
International Value Fund
| Shares |
Market Value• ($000) |
|||||
| Assa Abloy AB Class B | 1,587,513 | 61,100 | ||||
| Hexagon AB Class B | 2,484,886 | 27,147 | ||||
| 165,784 | ||||||
| Switzerland (4.6%) | ||||||
| Julius Baer Group Ltd. | 1,877,225 | 154,302 | ||||
| Roche Holding AG | 237,967 | 96,972 | ||||
| Sika AG (Registered) | 416,921 | 76,908 | ||||
| Nestle SA (Registered) | 723,330 | 73,230 | ||||
| Sandoz Group AG | 879,621 | 70,557 | ||||
| Zurich Insurance Group AG | 73,832 | 51,477 | ||||
| 523,446 | ||||||
| Taiwan (1.2%) | ||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 1,346,070 | 93,447 | ||||
| E Ink Holdings Inc. | 5,966,524 | 26,254 | ||||
| Realtek Semiconductor Corp. | 1,246,881 | 21,287 | ||||
| 140,988 | ||||||
| Thailand (0.4%) | ||||||
| Bangkok Bank PCL (Foreign) | 8,015,737 | 39,993 | ||||
| United Kingdom (9.6%) | ||||||
| GSK plc | 5,713,193 | 149,785 | ||||
| Smith & Nephew plc | 7,027,492 | 108,742 | ||||
| Prudential plc | 6,016,282 | 90,663 | ||||
| Diageo plc | 4,184,829 | 84,615 | ||||
| * | Berkeley Group Holdings plc | 1,388,939 | 60,474 | |||
| Informa plc | 5,329,388 | 57,622 | ||||
| HSBC Holdings plc | 3,061,552 | 56,332 | ||||
| BP plc ADR | 1,130,512 | 53,564 | ||||
| Admiral Group plc | 1,150,672 | 52,869 | ||||
| Croda International plc | 1,294,251 | 50,199 | ||||
| Haleon plc | 10,564,008 | 48,783 | ||||
| Intertek Group plc | 691,373 | 44,537 | ||||
| Standard Chartered plc | 1,616,583 | 41,166 | ||||
| Barclays plc | 6,337,260 | 37,250 | ||||
| Renishaw plc | 572,766 | 36,893 | ||||
| Kingfisher plc | 9,104,476 | 35,801 | ||||
| Paragon Banking Group plc | 3,018,752 | 30,745 | ||||
| Weir Group plc | 768,809 | 27,866 | ||||
| IMI plc | 597,793 | 22,769 | ||||
| Rolls-Royce Holdings plc | 62,555 | 1,007 | ||||
| 1,091,682 | ||||||
| United States (4.1%) | ||||||
| Chubb Ltd. | 393,471 | 128,665 | ||||
| Everest Group Ltd. | 227,837 | 81,283 | ||||
| Aon plc Class A | 220,198 | 68,625 | ||||
| Willis Towers Watson plc | 244,850 | 62,730 | ||||
| Medtronic plc | 766,267 | 62,045 | ||||
| Axis Capital Holdings Ltd. | 613,494 | 61,601 | ||||
| 464,949 | ||||||
| Vietnam (0.6%) | ||||||
| Phu Nhuan Jewelry JSC | 17,462,401 | 44,906 | ||||
| Vietnam Dairy Products JSC | 9,272,115 | 21,488 | ||||
| 66,394 | ||||||
| Total Common Stocks (Cost $8,818,540) | 10,720,684 | |||||
| Preferred Stocks (0.6%) | ||||||
| 2 | Dr Ing hc F Porsche AG Preference Shares | 721,483 | 35,036 | |||
| FUCHS SE Preference Shares | 597,365 | 28,140 | ||||
| Total Preferred Stocks (Cost $55,893) | 63,176 | |||||
4
International Value Fund
| Shares |
Market Value• ($000) |
|||||
| Temporary Cash Investments (3.8%) | ||||||
| Money Market Fund (3.8%) | ||||||
| 3,4 | Vanguard Market Liquidity Fund, 3.685% (Cost $435,964) | 4,360,805 | 436,037 | |||
| Total Investments (99.1%) (Cost $9,310,397) | 11,219,897 | |||||
| Other Assets and Liabilities-Net (0.9%) | 101,604 | |||||
| Net Assets (100%) | 11,321,501 | |||||
| Cost is in $000. |
| • | See Note A in Notes to Financial Statements. |
| * | Non-income-producing security. |
| 1 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2026, the aggregate value was $217,669, representing 1.9% of net assets. |
| 2 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $34,577. |
| 3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
| 4 | Collateral of $35,496 was received for securities on loan. |
| ADR-American Depositary Receipt. | |
| GDR-Global Depositary Receipt. |
Derivative Financial Instruments Outstanding as of Period End
| Futures Contracts | ||||
| ($000) | ||||
| Expiration |
Number of Long (Short) Contracts |
Notional Amount |
Value and Unrealized Appreciation (Depreciation) |
|
| Long Futures Contracts | ||||
| MSCI EAFE Index | June 2026 | 665 | 101,283 | 1,643 |
| MSCI Emerging Markets Index | June 2026 | 822 | 67,165 | 3,969 |
| 5,612 | ||||
| Forward Currency Contracts | |||||||
|
Contract Settlement Date |
Contract Amount (000) |
Unrealized Appreciation ($000) |
Unrealized (Depreciation) ($000) |
||||
| Counterparty | Receive | Deliver | |||||
| JPMorgan Chase Bank, N.A. | 6/17/2026 | GBP | 77 | USD | 103 | 1 | - |
| JPMorgan Chase Bank, N.A. | 6/17/2026 | USD | 6,521 | CHF | 5,007 | 82 | - |
| JPMorgan Chase Bank, N.A. | 6/17/2026 | USD | 559 | DKK | 3,572 | - | (3) |
| JPMorgan Chase Bank, N.A. | 6/17/2026 | USD | 7,130 | EUR | 6,102 | - | (46) |
| Deutsche Bank AG | 6/17/2026 | USD | 259 | JPY | 40,578 | - | (1) |
| JPMorgan Chase Bank, N.A. | 6/17/2026 | USD | 1,223 | NOK | 11,793 | - | (50) |
| Toronto-Dominion Bank | 6/17/2026 | USD | 158 | PLN | 585 | - | (3) |
| Toronto-Dominion Bank | 6/17/2026 | USD | 810 | SEK | 7,397 | 7 | - |
| 90 | (103) | ||||||
| CHF-Swiss franc. |
| DKK-Danish krone. |
| EUR-euro. |
| GBP-British pound. |
| JPY-Japanese yen. |
| NOK-Norwegian krone. |
| PLN-Polish zloty. |
| SEK-Swedish krona. |
| USD-U.S. dollar. |
See accompanying Notes, which are an integral part of the Financial Statements.
5
International Value Fund
Statement of Assets and Liabilities
As of April 30, 2026
| ($000s, except shares and per-share amounts) | Amount |
| Assets | |
| Investments in Securities, at Value1 | |
| Unaffiliated Issuers (Cost $8,874,433) | 10,783,860 |
| Affiliated Issuers (Cost $435,964) | 436,037 |
| Total Investments in Securities | 11,219,897 |
| Investment in Vanguard | 258 |
| Cash | 7,236 |
| Foreign Currency, at Value (Cost $10,844) | 10,767 |
| Cash Collateral Pledged-Futures Contracts | 7,056 |
| Receivables for Investment Securities Sold | 58,113 |
| Receivables for Accrued Income | 81,119 |
| Receivables for Capital Shares Issued | 1,832 |
| Variation Margin Receivable-Futures Contracts | 3,699 |
| Unrealized Appreciation-Forward Currency Contracts | 90 |
| Total Assets | 11,390,067 |
| Liabilities | |
| Payables for Investment Securities Purchased | 20,524 |
| Collateral for Securities on Loan | 35,496 |
| Payables for Capital Shares Redeemed | 7,427 |
| Payables to Investment Advisor | 4,084 |
| Payables to Vanguard | 932 |
| Unrealized Depreciation-Forward Currency Contracts | 103 |
| Total Liabilities | 68,566 |
| Net Assets | 11,321,501 |
| 1 Includes $34,577 of securities on loan. | |
|
At April 30, 2026, net assets consisted of: |
|
| Paid-in Capital | 8,517,012 |
| Total Distributable Earnings (Loss) | 2,804,489 |
| Net Assets | 11,321,501 |
| Net Assets | |
|
Applicable to 252,491,837 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
11,321,501 |
| Net Asset Value Per Share | $44.84 |
See accompanying Notes, which are an integral part of the Financial Statements.
6
International Value Fund
Statement of Operations
|
Six Months Ended April 30, 2026 |
|
| ($000) | |
| Investment Income | |
| Income | |
| Dividends1 | 143,484 |
| Interest2 | 6,860 |
| Securities Lending-Net | 72 |
| Total Income | 150,416 |
| Expenses | |
| Investment Advisory Fees-Note B | |
| Basic Fee | 8,888 |
| Performance Adjustment | (623) |
| The Vanguard Group-Note C | |
| Management and Administrative | 10,012 |
| Marketing and Distribution | 327 |
| Custodian Fees | 317 |
| Shareholders' Reports | 65 |
| Trustees' Fees and Expenses | 3 |
| Other Expenses | 32 |
| Total Expenses | 19,021 |
| Net Investment Income | 131,395 |
| Realized Net Gain (Loss) | |
| Investment Securities Sold2,3 | 835,254 |
| Futures Contracts | 7,446 |
| Forward Currency Contracts | 140 |
| Foreign Currencies | (2,779) |
| Realized Net Gain (Loss) | 840,061 |
| Change in Unrealized Appreciation (Depreciation) | |
| Investment Securities2,4 | 471,121 |
| Futures Contracts | 6,982 |
| Forward Currency Contracts | (375) |
| Foreign Currencies | 3,240 |
| Change in Unrealized Appreciation (Depreciation) | 480,968 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 1,452,424 |
| 1 | Dividends are net of foreign withholding taxes of $12,982. |
| 2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $6,649, ($16), and ($21), respectively. Purchases and sales are for temporary cash investment purposes. |
| 3 | Realized Gain (Loss) is net of foreign capital gains taxes of $454. |
| 4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($4,611). |
See accompanying Notes, which are an integral part of the Financial Statements.
7
International Value Fund
Statement of Changes in Net Assets
|
Six Months Ended April 30, 2026 |
Year Ended October 31, 2025 |
||
| ($000) | ($000) | ||
| Increase (Decrease) in Net Assets | |||
| Operations | |||
| Net Investment Income | 131,395 | 304,907 | |
| Realized Net Gain (Loss) | 840,061 | 1,642,522 | |
| Change in Unrealized Appreciation (Depreciation) | 480,968 | 159,701 | |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 1,452,424 | 2,107,130 | |
| Distributions | |||
| Total Distributions | (1,799,776) | (965,913) | |
| Capital Share Transactions | |||
| Issued | 565,009 | 1,029,587 | |
| Issued in Lieu of Cash Distributions | 1,628,112 | 874,958 | |
| Redeemed | (2,144,741) | (4,375,740) | |
| Net Increase (Decrease) from Capital Share Transactions | 48,380 | (2,471,195) | |
| Total Increase (Decrease) | (298,972) | (1,329,978) | |
| Net Assets | |||
| Beginning of Period | 11,620,473 | 12,950,451 | |
| End of Period | 11,321,501 | 11,620,473 | |
See accompanying Notes, which are an integral part of the Financial Statements.
8
International Value Fund
Financial Highlights
|
For a Share Outstanding Throughout Each Period |
Six Months Ended April 30, 2026 |
Year Ended October 31, | ||||
| 2025 | 2024 | 2023 | 2022 | 2021 | ||
| Net Asset Value, Beginning of Period | $46.80 | $42.37 | $36.55 | $32.96 | $43.76 | $32.48 |
| Investment Operations | ||||||
| Net Investment Income1 | .507 | 1.064 | 1.142 | 1.045 | 1.019 | 1.091 |
| Net Realized and Unrealized Gain (Loss) on Investments | 4.992 | 6.571 | 5.801 | 3.528 | (10.011) | 10.824 |
| Total from Investment Operations | 5.499 | 7.635 | 6.943 | 4.573 | (8.992) | 11.915 |
| Distributions | ||||||
| Dividends from Net Investment Income | (1.256) | (1.074) | (1.123) | (.983) | (1.087) | (.635) |
| Distributions from Realized Capital Gains | (6.203) | (2.131) | - | - | (.721) | - |
| Total Distributions | (7.459) | (3.205) | (1.123) | (.983) | (1.808) | (.635) |
| Net Asset Value, End of Period | $44.84 | $46.80 | $42.37 | $36.55 | $32.96 | $43.76 |
| Total Return2 | 13.51% | 19.90% | 19.23% | 13.97% | -21.28% | 36.91% |
| Ratios/Supplemental Data | ||||||
| Net Assets, End of Period (Millions) | $11,322 | $11,620 | $12,950 | $12,422 | $11,733 | $15,219 |
| Ratio of Total Expenses to Average Net Assets3 | 0.34% | 0.34% | 0.37%4 | 0.39% | 0.38% | 0.36% |
| Ratio of Net Investment Income to Average Net Assets | 2.32% | 2.55% | 2.76% | 2.72% | 2.68% | 2.56% |
| Portfolio Turnover Rate | 23% | 65% | 40% | 29% | 37% | 33% |
| The expense ratio and net investment income ratio for the current period have been annualized. | ||||||
| 1 | Calculated based on average shares outstanding. |
| 2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
| 3 | Includes performance-based investment advisory fee increases (decreases) of (0.01%), (0.01%), (0.00%), 0.01%, 0.00%, and (0.01%). |
| 4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.37%. |
See accompanying Notes, which are an integral part of the Financial Statements.
9
International Value Fund
Notes to Financial Statements
Vanguard International Value Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees.
These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
3. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. 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 securities pledged as initial margin for open contracts are noted in the Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. 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 gains (losses) on futures contracts.
During the six months ended April 30, 2026, the fund's average investments in long and short futures contracts represented 2% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.
4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. Risks associated with these types of forward currency contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund's net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Assets and Liabilities. 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 gains (losses) on forward currency contracts.
During the six months ended April 30, 2026, the fund's average investment in forward currency contracts represented less than 1% of net assets, based on the average of the notional amounts at each quarter-end during the period.
5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund's tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund's tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund's financial statements.
10
International Value Fund
6. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
7. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilities for the return of the collateral, during the period the securities are on loan. Collateral investments in Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
8. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund's regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund's board of trustees and included in Management and Administrative expenses on the fund's Statement of Operations. Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the "Order") from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the "Interfund Lending Program"), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund's investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day's notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the six months ended April 30, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
9. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Taxes on foreign dividends and capital gains have been provided for in accordance with the applicable countries' tax rules and rates. Deferred foreign capital gains tax, if any, is accrued daily based upon net unrealized gains. The fund has filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative and judicial proceedings within these countries. Amounts related to these reclaims are recorded when there are no significant uncertainties as to the ultimate resolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing of payment. Such tax reclaims and related professional fees, if any, are included in dividend income and other expenses, respectively.
B. The investment advisory firms Altrinsic Global Advisors, LLC, ARGA Investment Management, LP, and Sprucegrove Investment Management Ltd. each provide investment advisory services to a portion of the fund. The basic fee for each advisor is calculated at an annual percentage rate of average net assets managed by the advisor. Beginning August 1, 2026, the basic fee of Altrinsic Global Advisors will be subject to quarterly adjustments based on performance relative to the MSCI All Country World Index ex USA since July 31, 2025. The basic fees of ARGA Investment Management, LP, and Sprucegrove Investment Management Ltd. are subject to quarterly adjustments based on performance relative to the MSCI All Country World Index ex USA for the preceding five years.
Vanguard, through its wholly owned subsidiary Vanguard Portfolio Management, LLC, manages the cash reserves of the fund as described below.
For the six months ended April 30, 2026, the aggregate investment advisory fee paid to all advisors represented an effective annual basic rate of 0.16% of the fund's average net assets, before a net decrease of $623,000 (0.01%) based on performance.
C. In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, distribution, and cash management services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At April 30, 2026, the fund had contributed to Vanguard capital in the amount of $258,000, representing less than 0.01% of the fund's net assets and 0.10% of Vanguard's capital received pursuant to the FSA. The fund's trustees and officers are also directors and employees, respectively, of Vanguard.
11
International Value Fund
D. Various inputs may be used to determine the value of the fund's investments and derivatives. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1-Quoted prices in active markets for identical securities.
Level 2-Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3-Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund's investments and derivatives as of April 30, 2026, based on the inputs used to value them:
|
Level 1 ($000) |
Level 2 ($000) |
Level 3 ($000) |
Total ($000) |
|
| Investments | ||||
| Assets | ||||
| Common Stocks-North and South America | 1,257,033 | - | - | 1,257,033 |
| Common Stocks-Other | 308,668 | 9,154,983 | - | 9,463,651 |
| Preferred Stocks-Other | - | 63,176 | - | 63,176 |
| Temporary Cash Investments | 436,037 | - | - | 436,037 |
| Total | 2,001,738 | 9,218,159 | - | 11,219,897 |
| Derivative Financial Instruments | ||||
| Assets | ||||
| Futures Contracts1 | 5,612 | - | - | 5,612 |
| Forward Currency Contracts | - | 90 | - | 90 |
| Total | 5,612 | 90 | - | 5,702 |
| Liabilities | ||||
| Forward Currency Contracts | - | (103) | - | (103) |
| 1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day's variation margin is reported within the Statement of Assets and Liabilities. | |||
E. At April 30, 2026, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows:
| Statement of Assets and Liabilities |
Equity Contracts ($000) |
Foreign Exchange Contracts ($000) |
Total ($000) |
| Unrealized Appreciation-Futures Contracts1 | 5,612 | - | 5,612 |
| Unrealized Appreciation-Forward Currency Contracts | - | 90 | 90 |
| Total Assets | 5,612 | 90 | 5,702 |
| Unrealized Depreciation-Forward Currency Contracts | - | (103) | (103) |
| Total Liabilities | - | (103) | (103) |
| 1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day's variation margin is reported within the Statement of Assets and Liabilities. |
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended April 30, 2026, were:
| Realized Net Gain (Loss) on Derivatives |
Equity Contracts ($000) |
Foreign Exchange Contracts ($000) |
Total ($000) |
| Futures Contracts | 7,446 | - | 7,446 |
| Forward Currency Contracts | - | 140 | 140 |
| Realized Net Gain (Loss) on Derivatives | 7,446 | 140 | 7,586 |
| Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
| Futures Contracts | 6,982 | - | 6,982 |
| Forward Currency Contracts | - | (375) | (375) |
| Change in Unrealized Appreciation (Depreciation) on Derivatives | 6,982 | (375) | 6,607 |
12
International Value Fund
F. As of April 30, 2026, 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 | 9,375,115 |
| Gross Unrealized Appreciation | 2,427,793 |
| Gross Unrealized Depreciation | (577,412) |
| Net Unrealized Appreciation (Depreciation) | 1,850,381 |
G. During the six months ended April 30, 2026, the fund purchased $2,498,035,000 of investment securities and sold $4,239,207,000 of investment securities, other than temporary cash investments.
H. Capital shares issued and redeemed were:
|
Six Months Ended April 30, 2026 |
Year Ended October 31, 2025 |
||
|
Shares (000) |
Shares (000) |
||
| Issued | 12,857 | 25,032 | |
| Issued in Lieu of Cash Distributions | 40,310 | 23,338 | |
| Redeemed | (48,970) | (105,756) | |
| Net Increase (Decrease) in Shares Outstanding | 4,197 | (57,386) |
I. Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance.
To the extent the fund's investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
The use of derivatives may expose the fund to various risks. Derivatives can be highly volatile, and any initial investment is generally small relative to the notional amount so that transactions may be leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives than on standard securities. Leveraged derivatives positions can, therefore, increase volatility. Additional information regarding the fund's use of derivative(s) and the specific risks associated is described under significant accounting policies.
J. Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their operating results regularly reviewed by a chief operating decision maker ("CODM"). The fund is considered a single segment. Vanguard's chief executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund's chief financial officer collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund's daily operations. Through these committees, the CODM manages the fund's operations to achieve a single investment objective, as detailed in its prospectus, through the execution of the fund's investment strategies. When assessing segment performance and making decisions about segment resources, the CODM relies on the fund's portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the information contained in the fund's financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying financial statements.
K. Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would require recognition or disclosure in these financial statements.
Q462 062026
13
Financial Statements
For the six-months ended April 30, 2026
Vanguard Diversified Equity Fund
Contents
|
Financial Statements
|
1 |
Diversified Equity Fund
Financial Statements (unaudited)
Schedule of Investments
As of April 30, 2026
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) |
|||||
| Investment Companies (100.1%) | ||||||
| U.S. Stock Funds (100.1%) | ||||||
| Vanguard U.S. Growth Fund Investor Shares | 11,731,854 | 868,861 | ||||
| Vanguard Growth and Income Fund Investor Shares | 8,405,653 | 589,404 | ||||
| Vanguard WindsorTM Fund Investor Shares | 25,494,001 | 588,657 | ||||
| Vanguard Windsor II Fund Investor Shares | 8,901,629 | 440,453 | ||||
| Vanguard ExplorerTM Fund Investor Shares | 2,358,296 | 300,329 | ||||
| Vanguard Mid-Cap Growth Fund | 5,883,321 | 140,847 | ||||
| Total Investment Companies (Cost $1,617,330) | 2,928,551 | |||||
| Temporary Cash Investments (0.0%) | ||||||
| Money Market Fund (0.0%) | ||||||
| 1 | Vanguard Market Liquidity Fund, 3.685% (Cost $29) | 288 | 29 | |||
| Total Investments (100.1%) (Cost $1,617,359) | 2,928,580 | |||||
| Other Assets and Liabilities-Net (-0.1%) | (1,559) | |||||
| Net Assets (100%) | 2,927,021 | |||||
| Cost is in $000. |
| • | See Note A in Notes to Financial Statements. |
| 1 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
See accompanying Notes, which are an integral part of the Financial Statements.
1
Diversified Equity Fund
Statement of Assets and Liabilities
As of April 30, 2026
| ($000s, except shares and per-share amounts) | Amount |
| Assets | |
| Investments in Securities, at Value-Affiliated Funds (Cost $1,617,359) | 2,928,580 |
| Receivables for Investment Securities Sold | 392 |
| Receivables for Accrued Income | 1 |
| Receivables for Capital Shares Issued | 447 |
| Total Assets | 2,929,420 |
| Liabilities | |
| Payables for Investment Securities Purchased | 1 |
| Payables for Capital Shares Redeemed | 2,398 |
| Total Liabilities | 2,399 |
| Net Assets | 2,927,021 |
|
At April 30, 2026, net assets consisted of: |
|
| Paid-in Capital | 1,403,519 |
| Total Distributable Earnings (Loss) | 1,523,502 |
| Net Assets | 2,927,021 |
| Net Assets | |
|
Applicable to 52,852,857 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
2,927,021 |
| Net Asset Value Per Share | $55.38 |
See accompanying Notes, which are an integral part of the Financial Statements.
2
Diversified Equity Fund
Statement of Operations
|
Six Months Ended April 30, 2026 |
|
| ($000) | |
| Investment Income | |
| Income | |
| Income Distributions Received from Affiliated Funds | 12,766 |
| Net Investment Income-Note C | 12,766 |
| Realized Net Gain (Loss) | |
| Capital Gain Distributions Received from Affiliated Funds | 241,748 |
| Affiliated Funds Sold | 10,016 |
| Realized Net Gain (Loss) | 251,764 |
| Change in Unrealized Appreciation (Depreciation) from Affiliated Funds | (163,656) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 100,874 |
See accompanying Notes, which are an integral part of the Financial Statements.
3
Diversified Equity Fund
Statement of Changes in Net Assets
|
Six Months Ended April 30, 2026 |
Year Ended October 31, 2025 |
||
| ($000) | ($000) | ||
| Increase (Decrease) in Net Assets | |||
| Operations | |||
| Net Investment Income | 12,766 | 29,022 | |
| Realized Net Gain (Loss) | 251,764 | 245,365 | |
| Change in Unrealized Appreciation (Depreciation) | (163,656) | 212,868 | |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 100,874 | 487,255 | |
| Distributions | |||
| Total Distributions | (250,099) | (120,209) | |
| Capital Share Transactions | |||
| Issued | 66,468 | 203,328 | |
| Issued in Lieu of Cash Distributions | 227,127 | 110,560 | |
| Redeemed | (225,470) | (575,840) | |
| Net Increase (Decrease) from Capital Share Transactions | 68,125 | (261,952) | |
| Total Increase (Decrease) | (81,100) | 105,094 | |
| Net Assets | |||
| Beginning of Period | 3,008,121 | 2,903,027 | |
| End of Period | 2,927,021 | 3,008,121 | |
See accompanying Notes, which are an integral part of the Financial Statements.
4
Diversified Equity Fund
Financial Highlights
|
For a Share Outstanding Throughout Each Period |
Six Months Ended April 30, 2026 |
Year Ended October 31, | ||||
| 2025 | 2024 | 2023 | 2022 | 2021 | ||
| Net Asset Value, Beginning of Period | $58.32 | $51.39 | $39.45 | $41.38 | $56.40 | $40.98 |
| Investment Operations | ||||||
| Net Investment Income1 | .240 | .536 | .475 | .398 | .356 | .385 |
| Capital Gain Distributions Received1 | 4.554 | 3.710 | 1.374 | 1.973 | 6.162 | 2.294 |
| Net Realized and Unrealized Gain (Loss) on Investments | (2.807) | 4.837 | 12.134 | .358 | (17.785) | 15.438 |
| Total from Investment Operations | 1.987 | 9.083 | 13.983 | 2.729 | (11.267) | 18.117 |
| Distributions | ||||||
| Dividends from Net Investment Income | (.377) | (.475) | (.403) | (.256) | (.317) | (.346) |
| Distributions from Realized Capital Gains | (4.550) | (1.678) | (1.640) | (4.403) | (3.436) | (2.351) |
| Total Distributions | (4.927) | (2.153) | (2.043) | (4.659) | (3.753) | (2.697) |
| Net Asset Value, End of Period | $55.38 | $58.32 | $51.39 | $39.45 | $41.38 | $56.40 |
| Total Return2 | 3.57% | 18.27% | 36.30% | 7.88% | -21.42% | 45.67% |
| Ratios/Supplemental Data | ||||||
| Net Assets, End of Period (Millions) | $2,927 | $3,008 | $2,903 | $2,246 | $2,180 | $2,965 |
| Ratio of Total Expenses to Average Net Assets | - | - | - | - | - | - |
| Acquired Fund Fees and Expenses | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% |
| Ratio of Net Investment Income to Average Net Assets | 0.81% | 1.02% | 1.00% | 0.99% | 0.77% | 0.76% |
| Portfolio Turnover Rate | 6% | 9% | 5% | 7% | 12% | 6% |
| The expense ratio, acquired fund fees and expenses, and net investment income ratio for the current period have been annualized. | ||||||
| 1 | Calculated based on average shares outstanding. |
| 2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
See accompanying Notes, which are an integral part of the Financial Statements.
5
Diversified Equity Fund
Notes to Financial Statements
Vanguard Diversified Equity Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in selected Vanguard actively managed U.S. Stock Funds. Financial Statements and other information about each underlying fund are available on www.vanguard.com.
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: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.
2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute virtually all of its taxable income. The fund's tax returns are open to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return. Management has analyzed the fund's tax positions taken for all open federal and state income tax years, and has concluded that no provision for income tax is required in the fund's financial statements.
3. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.
4. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed by The Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided by Vanguard. Both facilities may be renewed annually. Each fund is individually liable for its borrowings, if any, under the credit facilities. Borrowings may be utilized for temporary or emergency purposes and are subject to the fund's regulatory and contractual borrowing restrictions. With respect to the committed credit facility, the participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn committed amount of the facility, which are allocated to the funds based on a method approved by the fund's board of trustees and borne by the funds in which the fund invests (see Note C). Any borrowings under either facility bear interest at the higher of the effective federal funds rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate. However, borrowings under the uncommitted credit facility may bear interest based upon an alternate rate agreed to by the fund and Vanguard.
In accordance with an exemptive order (the "Order") from the SEC, the fund may participate in a joint lending and borrowing program that allows registered open-end Vanguard funds to borrow money from and lend money to each other for temporary or emergency purposes (the "Interfund Lending Program"), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the fund's investment objective and investment policies. Interfund loans and borrowings normally extend overnight but can have a maximum duration of seven days. Loans may be called on one business day's notice. The interest rate to be charged is governed by the conditions of the Order and internal procedures adopted by the board of trustees. The board of trustees is responsible for overseeing the Interfund Lending Program.
For the six months ended April 30, 2026, the fund did not utilize the credit facilities or the Interfund Lending Program.
5. Other: Income and capital gain distributions received are recorded on the ex-dividend date. Interest income, if any, includes interest earned on cash and cash collateral. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
B. Vanguard provides investment advisory services to the fund through its wholly owned subsidiary Vanguard Capital Management, LLC.
C. In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. The FSA provides that expenses otherwise allocable to Vanguard funds-of-funds may be reduced or eliminated to the extent of savings realized by the underlying Vanguard funds by virtue of being part of a fund-of-funds. Accordingly, all expenses for services provided by Vanguard to the fund and all other expenses incurred by the fund during the six months ended April 30, 2026, were borne by the underlying Vanguard funds in which the fund invests. The fund's trustees and officers are also trustees and officers, respectively, of the underlying Vanguard funds, as well as directors and employees, respectively, of Vanguard.
D. Various inputs may be used to determine the value of the fund's investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1-Quoted prices in active markets for identical securities.
Level 2-Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3-Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.
At April 30, 2026, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
6
Diversified Equity Fund
E. As of April 30, 2026, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows:
|
Amount ($000) |
|
| Tax Cost | 1,618,564 |
| Gross Unrealized Appreciation | 1,313,220 |
| Gross Unrealized Depreciation | (3,204) |
| Net Unrealized Appreciation (Depreciation) | 1,310,016 |
F. Capital shares issued and redeemed were:
|
Six Months Ended April 30, 2026 |
Year Ended October 31, 2025 |
||
|
Shares (000) |
Shares (000) |
||
| Issued | 1,219 | 3,894 | |
| Issued in Lieu of Cash Distributions | 4,180 | 2,166 | |
| Redeemed | (4,124) | (10,968) | |
| Net Increase (Decrease) in Shares Outstanding | 1,275 | (4,908) |
G. Transactions during the period in affiliated underlying Vanguard funds were as follows:
| Current Period Transactions | ||||||||
|
Oct. 31, 2025 Market Value ($000) |
Purchases at Cost ($000) |
Proceeds from Securities Sold ($000) |
Realized Net Gain (Loss) ($000) |
Change in Unrealized App. (Dep.) ($000) |
Income ($000) |
Capital Gain Distributions Received ($000) |
Apr. 30, 2026 Market Value ($000) |
|
| Vanguard Explorer Fund | 299,154 | 20,226 | 31,888 | 275 | 12,562 | 1,239 | 18,987 | 300,329 |
| Vanguard Growth and Income Fund | 610,557 | 55,336 | 50,817 | 4,910 | (30,582) | 1,994 | 53,342 | 589,404 |
| Vanguard Market Liquidity Fund | - | NA1 | NA1 | - | - | 3 | - | 29 |
| Vanguard Mid-Cap Growth Fund | 150,631 | 22,476 | 3,413 | (206) | (28,641) | 298 | 22,179 | 140,847 |
| Vanguard U.S. Growth Fund | 915,797 | 77,835 | 2,151 | 676 | (123,296) | 530 | 74,831 | 868,861 |
| Vanguard Windsor Fund | 581,416 | 38,367 | 46,777 | 1,397 | 14,254 | 5,417 | 32,345 | 588,657 |
| Vanguard Windsor II Fund | 450,316 | 43,350 | 48,224 | 2,964 | (7,953) | 3,285 | 40,064 | 440,453 |
| Total | 3,007,871 | 257,590 | 183,270 | 10,016 | (163,656) | 12,766 | 241,748 | 2,928,580 |
| 1 | Not applicable-purchases and sales are for temporary cash investment purposes. |
H. Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, political or regulatory conditions, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance.
To the extent the fund's investment portfolio reflects concentration in a particular market, industry, sector, country or asset class, the fund may be adversely affected by the performance of these concentrations and may be subject to increased price volatility and other risks.
I. Operating segments are components of an entity that engage in business activities, have discrete financial information available, and have their operating results regularly reviewed by a chief operating decision maker ("CODM"). The fund is considered a single segment. Vanguard's chief executive officer, chief investment officer, and chief financial officer, who are also officers of the fund, as well as the fund's chief financial officer collectively act as the CODM. Vanguard has established various management committees to assist the CODM with overseeing aspects of the fund's daily operations. Through these committees, the CODM manages the fund's operations to achieve a single investment objective, as detailed in its prospectus, through the execution of the fund's investment strategies. When assessing segment performance and making decisions about segment resources, the CODM relies on the fund's portfolio composition, total returns, expense ratios and changes in net assets which are consistent with the information contained in the fund's financial statements. Segment assets, liabilities, income, and expenses are also detailed in the accompanying financial statements.
J. Management has determined that no subsequent events or transactions occurred through the date the financial statements were issued that would require recognition or disclosure in these financial statements.
Q6082 062026
7
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9: Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10: Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Not applicable. The Trustees' Fees and Expenses for International Value Fund are included in the financial statements filed under Item 7 of this Form, and those of the Diversified Equity Fund are borne by the underlying Vanguard funds in which the fund of the Registrant invests.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contracts.
Trustees Approve Advisory Arrangement - Diversified Equity Fund
A majority of independent trustees of the board of Vanguard Diversified Equity Fund (Trustees) has approved a restructuring of the fund's management structure whereby the Vanguard Group, Inc. (Vanguard) will now provide investment advisory services to the fund through its subsidiary, Vanguard Capital Management LLC (VCM). The trustees determined that approving the advisory arrangement was in the best interests of the fund and its shareholders.
The Trustees based their decision upon an evaluation of VCM's investment staff, portfolio management process, and performance. This evaluation included information provided by Vanguard's Oversight and Manager Search team, which is responsible for fund and advisor oversight and product management. The Trustees considered the factors discussed below, among others. However, no single factor determined whether to approve the arrangement. Rather, it was the totality of the circumstances that drove the Trustee's decisions.
Nature, extent, and quality of services
The Trustees considered the quality of the investment management services to be provided to the fund and took into account the organizational depth and stability of Vanguard and VCM. The Trustees considered that Vanguard has been managing investments for more than four decades. The Global Equity Index Management team (GE), now within VCM, adheres to the same sound, disciplined investment management process and has considerable experience, stability and depth. GE has specific expertise and experience managing large, broad-market U.S. equity index strategies, seeking to minimize transaction costs and tracking error while opportunistically adding excess returns through sophisticated trading and superior access to corporate actions. Additionally, GE has significant resources and expertise in global and non-U.S. trading and currency hedging capabilities.
The Trustees concluded that VCM's experience, stability, depth, and performance, among other factors, warranted approval of the advisory arrangement.
Investment performance
The Trustees determined that VCM's Global Equity Index Management team, in its management of Vanguard funds, including the fund, has a track record of consistent performance and disciplined investment processes. The Trustees concluded the performance was such that the advisory arrangements warranted approval.
Cost
The Trustees concluded that the fund's expense ratio will remain below the average expense ratio charged by funds in its peer group and that the fund's advisory expenses will also continue to be below the peer-group average.
The Trustees do not conduct a profitability analysis of Vanguard in providing investment advisory services through VCM 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 Trustees concluded that the fund's arrangement with Vanguard, and services rendered through VCM, ensure that the fund will realize economies of scale as it grows, with the cost to shareholders declining as fund assets increase.
The Trustees will consider whether to renew the advisory arrangement again after a one-year period.
Item 12: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 16: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant's Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. There were no changes in the Registrant's Internal Control Over Financial Reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
Item 17: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18: Recovery of Erroneously Awarded Compensation
Not applicable.
Item 19: Exhibits.
| (a)(1) Not applicable. |
| (a)(2) Certifications filed herewith. |
| (a)(2) Certifications filed herewith. |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| VANGUARD TRUSTEES' EQUITY FUND | ||
| BY: | /s/ SALIM RAMJI* | |
| SALIM RAMJI | ||
| CHIEF EXECUTIVE OFFICER | ||
Date: June 23, 2026
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| VANGUARD TRUSTEES' EQUITY FUND | ||
| BY: | /s/ SALIM RAMJI* | |
| SALIM RAMJI | ||
| CHIEF EXECUTIVE OFFICER | ||
Date: June 23, 2026
| VANGUARD TRUSTEES' EQUITY FUND | ||
| BY: | /s/ CHRISTINE BUCHANAN* | |
| CHRISTINE BUCHANAN | ||
| CHIEF FINANCIAL OFFICER | ||
Date: June 23, 2026
| * By: | /s/ Natalie Lamarque |
Natalie Lamarque, pursuant to a Power of Attorney filed on December 19, 2025 (see File Number 33-49023), and to a Power of Attorney filed on February 27, 2026 (see File Number 333-177613), Incorporated by Reference.
Vanguard Trustees Equity Fund published this content on July 01, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on July 01, 2026 at 13:53 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]