Semi Annual Report by Investment Company Form N CSRS

Semi-Annual Shareholder Report | July 31, 2024

This semi-annual shareholder report contains important information about Vanguard Real Estate II Index Fund (the "Fund") for the period of February 1, 2024, to July 31, 2024.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.

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Semi-Annual Shareholder Report | July 31, 2024

This semi-annual shareholder report contains important information about Vanguard GNMA Fund (the "Fund") for the period of February 1, 2024, to July 31, 2024.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.

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Semi-Annual Shareholder Report | July 31, 2024

This semi-annual shareholder report contains important information about Vanguard GNMA Fund (the "Fund") for the period of February 1, 2024, to July 31, 2024.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.

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Financial Statements

For the six-months ended July 31, 2024

Vanguard Real Estate Index Funds

Schedule of Investments

As of July 31, 2024

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

					Shares	Market Value• ($000)
Equity Real Estate Investment Trusts (REITs) (93.0%)
Data Center REITs (7.2%)
	Equinix Inc.	3,704,058	2,927,095
	Digital Realty Trust Inc.	12,517,842	1,871,292
						4,798,387
Diversified REITs (1.7%)
	WP Carey Inc.	8,763,660	506,627
	Essential Properties Realty Trust Inc.	6,787,350	200,838
	Broadstone Net Lease Inc.	7,522,804	130,972
	Global Net Lease Inc.	7,850,266	68,297
	Empire State Realty Trust Inc. Class A	5,555,141	59,829
	Alexander & Baldwin Inc.	2,912,424	57,404
	American Assets Trust Inc.	1,954,928	51,845
	Armada Hoffler Properties Inc.	2,677,452	31,808
	Gladstone Commercial Corp.	1,605,487	24,163
	One Liberty Properties Inc.	683,731	18,044
	NexPoint Diversified Real Estate Trust	1,351,587	8,555
						1,158,382
Health Care REITs (9.1%)
	Welltower Inc.	22,303,324	2,481,245
	Ventas Inc.	16,129,371	878,083
	Alexandria Real Estate Equities Inc.	6,310,375	740,144
	Healthpeak Properties Inc.	28,437,400	620,504
	Omega Healthcare Investors Inc.	9,831,086	357,851
	Healthcare Realty Trust Inc. Class A	15,277,898	270,266
	Sabra Health Care REIT Inc.	9,270,252	150,456
	CareTrust REIT Inc.	5,410,654	145,871
	National Health Investors Inc.	1,738,475	130,142
1	Medical Properties Trust Inc.	24,007,858	115,478
	LTC Properties Inc.	1,739,334	62,112
	Community Healthcare Trust Inc.	1,109,373	24,140
	Global Medical REIT Inc.	2,492,969	23,808
	Diversified Healthcare Trust	6,751,527	22,550
	Universal Health Realty Income Trust	525,707	22,474
						6,045,124
Hotel & Resort REITs (2.1%)
	Host Hotels & Resorts Inc.	28,199,166	493,767
	Ryman Hospitality Properties Inc.	2,273,442	228,504
	Apple Hospitality REIT Inc.	9,227,206	136,470
	Park Hotels & Resorts Inc.	8,437,596	127,070
	Sunstone Hotel Investors Inc.	7,760,962	80,404
	DiamondRock Hospitality Co.	8,406,153	69,183
	Pebblebrook Hotel Trust	4,822,961	66,026
	RLJ Lodging Trust	6,242,405	58,928
	Xenia Hotels & Resorts Inc.	4,083,901	56,685
	Service Properties Trust	6,648,666	37,698
	Summit Hotel Properties Inc.	4,310,625	27,329
	Chatham Lodging Trust	1,958,231	17,213
						1,399,277
Industrial REITs (10.4%)
	Prologis Inc.	37,078,334	4,673,724
	Rexford Industrial Realty Inc.	8,729,473	437,434
	EastGroup Properties Inc.	1,921,896	359,375
	Americold Realty Trust Inc.	10,812,340	323,181
	STAG Industrial Inc.	7,288,241	297,433
	First Industrial Realty Trust Inc.	5,304,060	290,238
	Terreno Realty Corp.	3,850,594	263,419
	Innovative Industrial Properties Inc.	1,130,408	138,825
	LXP Industrial Trust	11,793,858	121,477
	Plymouth Industrial REIT Inc.	1,638,242	39,187

					Shares	Market Value• ($000)
*	Anywhere Real Estate Inc.	4,011,839	18,936
						4,001,577
Total Real Estate Management & Development (Cost $4,780,514)	4,387,998
Temporary Cash Investments (0.7%)
Money Market Fund (0.7%)
6,7	Vanguard Market Liquidity Fund, 5.390% (Cost $489,227)	4,893,087	489,260
Total Investments (100.3%) (Cost $63,455,398)		66,901,999
Other Assets and Liabilities-Net (-0.3%)		(231,587)
Net Assets (100%)		66,670,412

Cost is in $000.

•	See Note A in Notes to Financial Statements.

*	Non-income-producing security.
1	Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $231,480,000.
2	Security value determined using significant unobservable inputs.
3	"Other" represents securities that are not classified by the fund's benchmark index.
4	Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
5	Represents a wholly owned subsidiary of the fund. See accompanying financial statements for Vanguard Real Estate II Index Fund's Schedule of Investments.
6	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
7	Collateral of $261,849,000 was received for securities on loan.

REIT-Real Estate Investment Trust.

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)1 (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
Equinix Inc.	8/29/25	BANA	75,660	(5.431)	3,022	-
Redfin Corp.	1/31/25	GSI	2,895	(5.331)	-	(52)
VICI Properties Inc. Class A	8/30/24	BANA	97,376	(5.981)	9,833	-
Welltower Inc.	8/30/24	BANA	52,125	(5.481)	3,262	-
					16,117	(52)

1	Based on USD Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/paid monthly.
	BANA-Bank of America, N.A.
	GSI-Goldman Sachs International.

At July 31, 2024, the counterparties had deposited in segregated accounts securities with a value of $15,607,000 in connection with open over-the-counter swap contracts.

	Six Months Ended July 31, 2024
	($000)
Investment Income
Income
Dividends-Unaffiliated Issuers	814,449
Dividends-Vanguard Real Estate II Index Fund	172,480
Interest-Affiliated Issuers	3,709
Securities Lending-Net	1,818
Total Income	992,456
Expenses
The Vanguard Group-Note B
Investment Advisory Services	561
Management and Administrative-Investor Shares	99
Management and Administrative-ETF Shares	16,972
Management and Administrative-Admiral Shares	10,449
Management and Administrative-Institutional Shares	4,395
Marketing and Distribution-Investor Shares	2
Marketing and Distribution-ETF Shares	682
Marketing and Distribution-Admiral Shares	441
Marketing and Distribution-Institutional Shares	181
Custodian Fees	38
Shareholders' Reports-Investor Shares	-
Shareholders' Reports-ETF Shares	643
Shareholders' Reports-Admiral Shares	201
Shareholders' Reports-Institutional Shares	101
Trustees' Fees and Expenses	17
Other Expenses	8
Total Expenses	34,790
Net Investment Income	957,666
Realized Net Gain (Loss)
Capital Gain Distributions Received-Unaffiliated Issuers	132,292
Capital Gain Distributions Received-Vanguard Real Estate II Index Fund	-
Investment Securities Sold-Unaffiliated Issuers1	358,108
Investment Securities Sold-Affiliated Issuers	15
Investment Securities Sold-Vanguard Real Estate II Index Fund	-
Swap Contracts	(1,997)
Realized Net Gain (Loss)	488,418
Change in Unrealized Appreciation (Depreciation)
Investment Securities-Unaffiliated Issuers	3,902,007
Investment Securities-Affiliated Issuers	(36)
Investment Securities-Vanguard Real Estate II Index Fund	636,035
Swap Contracts	21,763
Change in Unrealized Appreciation (Depreciation)	4,559,769
Net Increase (Decrease) in Net Assets Resulting from Operations	6,005,853

1	Includes $722,736,000 of net gain (loss) resulting from in-kind redemptions.

Investor Shares
For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2024	Year Ended January 31,
2024	2023	2022	2021	2020
Net Asset Value, Beginning of Period	$27.89	$30.26	$35.37	$28.23	$31.21	$27.69
Investment Operations
Net Investment Income1	.404	.787	.684	.602	.586	.719
Net Realized and Unrealized Gain (Loss) on Investments	2.291	(2.036)	(4.766)	7.475	(2.498)	3.801
Total from Investment Operations	2.695	(1.249)	(4.082)	8.077	(1.912)	4.520
Distributions
Dividends from Net Investment Income	(.565)	(.833)	(.686)	(.620)	(.624)	(.752)
Distributions from Realized Capital Gains	-	-	-	-	-	-
Return of Capital	-	(.288)	(.342)	(.317)	(.444)	(.248)
Total Distributions	(.565)	(1.121)	(1.028)	(.937)	(1.068)	(1.000)
Net Asset Value, End of Period	$30.02	$27.89	$30.26	$35.37	$28.23	$31.21
Total Return2	9.82%	-3.91%	-11.39%	28.73%	-5.88%	16.59%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$84	$86	$127	$196	$188	$243
Ratio of Total Expenses to Average Net Assets	0.26%	0.26%	0.26%3	0.26%	0.26%	0.26%
Acquired Fund Fees and Expenses4	0.01%	0.01%	-	-	-	-
Ratio of Net Investment Income to Average Net Assets	2.90%	2.87%	2.18%	1.77%	2.18%	2.48%
Portfolio Turnover Rate5	3%	9%	7%	7%	8%	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.
3	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.25%.
4	For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%.
5	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.

ETF Shares
For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2024	Year Ended January 31,
2024	2023	2022	2021	2020
Net Asset Value, Beginning of Period	$83.94	$91.06	$106.44	$84.96	$93.93	$83.36
Investment Operations
Net Investment Income1	1.290	2.527	2.240	1.960	1.889	2.335
Net Realized and Unrealized Gain (Loss) on Investments	6.875	(6.154)	(14.394)	22.486	(7.525)	11.379
Total from Investment Operations	8.165	(3.627)	(12.154)	24.446	(5.636)	13.714
Distributions
Dividends from Net Investment Income	(1.765)	(2.595)	(2.152)	(1.943)	(1.947)	(2.364)
Distributions from Realized Capital Gains	-	-	-	-	-	-
Return of Capital	-	(.898)	(1.074)	(1.023)	(1.387)	(.780)
Total Distributions	(1.765)	(3.493)	(3.226)	(2.966)	(3.334)	(3.144)
Net Asset Value, End of Period	$90.34	$83.94	$91.06	$106.44	$84.96	$93.93
Total Return	9.89%	-3.81%	-11.25%	28.88%	-5.80%	16.70%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$34,657	$32,359	$36,825	$46,673	$32,064	$37,682
Ratio of Total Expenses to Average Net Assets	0.12%	0.12%	0.12%2	0.12%	0.12%	0.12%
Acquired Fund Fees and Expenses3	0.01%	0.01%	-	-	-	-
Ratio of Net Investment Income to Average Net Assets	3.08%	3.07%	2.38%	1.90%	2.33%	2.60%
Portfolio Turnover Rate4	3%	9%	7%	7%	8%	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	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%.
3	For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%.
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.

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2024	Year Ended January 31,
2024	2023	2022	2021	2020
Net Asset Value, Beginning of Period	$118.96	$129.05	$150.85	$120.40	$133.12	$118.14
Investment Operations
Net Investment Income1	1.823	3.613	3.201	2.761	2.677	3.315
Net Realized and Unrealized Gain (Loss) on Investments	9.758	(8.752)	(20.428)	31.890	(10.672)	16.121
Total from Investment Operations	11.581	(5.139)	(17.227)	34.651	(7.995)	19.436
Distributions
Dividends from Net Investment Income	(2.501)	(3.678)	(3.050)	(2.770)	(2.759)	(3.350)
Distributions from Realized Capital Gains	-	-	-	-	-	-
Return of Capital	-	(1.273)	(1.523)	(1.431)	(1.966)	(1.106)
Total Distributions	(2.501)	(4.951)	(4.573)	(4.201)	(4.725)	(4.456)
Net Asset Value, End of Period	$128.04	$118.96	$129.05	$150.85	$120.40	$133.12
Total Return2	9.90%	-3.75%	-11.26%	28.91%	-5.74%	16.73%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$20,969	$19,879	$22,110	$25,764	$19,702	$23,274
Ratio of Total Expenses to Average Net Assets	0.12%	0.12%	0.12%3	0.12%	0.12%	0.12%
Acquired Fund Fees and Expenses4	0.01%	0.01%	-	-	-	-
Ratio of Net Investment Income to Average Net Assets	3.07%	3.10%	2.41%	1.90%	2.33%	2.60%
Portfolio Turnover Rate5	3%	9%	7%	7%	8%	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.
3	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.12%.
4	For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%.
5	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.

Institutional Shares
For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2024	Year Ended January 31,
2024	2023	2022	2021	2020
Net Asset Value, Beginning of Period	$18.41	$19.97	$23.35	$18.64	$20.60	$18.28
Investment Operations
Net Investment Income1	.285	.565	.500	.432	.421	.518
Net Realized and Unrealized Gain (Loss) on Investments	1.514	(1.355)	(3.168)	4.933	(1.646)	2.496
Total from Investment Operations	1.799	(.790)	(2.668)	5.365	(1.225)	3.014
Distributions
Dividends from Net Investment Income	(.389)	(.572)	(.475)	(.432)	(.429)	(.522)
Distributions from Realized Capital Gains	-	-	-	-	-	-
Return of Capital	-	(.198)	(.237)	(.223)	(.306)	(.172)
Total Distributions	(.389)	(.770)	(.712)	(.655)	(.735)	(.694)
Net Asset Value, End of Period	$19.82	$18.41	$19.97	$23.35	$18.64	$20.60
Total Return	9.94%	-3.73%	-11.27%	28.91%	-5.68%	16.77%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$10,962	$9,885	$10,610	$12,089	$9,478	$10,027
Ratio of Total Expenses to Average Net Assets	0.10%	0.10%	0.10%2	0.10%	0.10%	0.10%
Acquired Fund Fees and Expenses3	0.01%	0.01%	-	-	-	-
Ratio of Net Investment Income to Average Net Assets	3.10%	3.13%	2.43%	1.92%	2.37%	2.63%
Portfolio Turnover Rate4	3%	9%	7%	7%	8%	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	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.10%.
3	For the fiscal year ended January 31, 2023, and for each prior period, the acquired fund fees and expenses were less than 0.01%.
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.

Vanguard Real Estate Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers four classes of shares: Investor Shares, ETF Shares, Admiral Shares, and Institutional Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.

As a part of its principal investment strategy, the fund attempts to replicate its benchmark index by investing all, or substantially all, of its assets-either directly or indirectly through a wholly owned subsidiary-in the stocks that make up the index. Vanguard Real Estate II Index Fund ("the Subsidiary") is the wholly owned subsidiary in which the fund has invested a portion of its assets. Expenses of the Subsidiary are reflected in the Acquired Fund Fees and Expenses in the Financial Highlights. For additional financial information about the Subsidiary, refer to the accompanying financial statements.

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees.

Investments in affiliated Vanguard funds are valued at that fund's net asset value.

2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund's target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.

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

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

During the six months ended July 31, 2024, 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.

3. 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.

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. The portion of distributions that exceed a fund's current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

5. 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.

6. 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 an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. 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 July 31, 2024, the fund did not utilize the credit facilities or the Interfund Lending Program.

7. Other: Distributions received from investment securities are recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Each investment security reports annually the tax character of its distributions. Dividend income, capital gain distributions received, and unrealized appreciation (depreciation) reflect the amounts of taxable income, capital gain, and return of capital reported by the REITs, and management's estimates of such amounts for REIT distributions for which actual information has not been reported. Income, capital gain, and return of capital distributions received from affiliated Vanguard funds are recorded on ex-dividend date. 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.

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

B. In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees 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 July 31, 2024, the fund had contributed to Vanguard capital in the amount of $1,546,000, representing less than 0.01% of the fund's net assets and 0.62% of Vanguard's capital received pursuant to the FSA. 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 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 July 31, 2024, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	66,412,544	-	195	66,412,739
Temporary Cash Investments	489,260	-	-	489,260
Total	66,901,804	-	195	66,901,999
Derivative Financial Instruments
Assets
Swap Contracts	-	16,117	-	16,117
Liabilities
Swap Contracts	-	52	-	52

D. As of July 31, 2024, 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	63,842,452
Gross Unrealized Appreciation	9,983,122
Gross Unrealized Depreciation	(6,907,510)
Net Unrealized Appreciation (Depreciation)	3,075,612

The fund's tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2024, the fund had available capital losses totaling $3,972,566,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2025; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

E. During the six months ended July 31, 2024, the fund purchased $2,067,111,000 of investment securities and sold $2,257,401,000 of investment securities, other than temporary cash investments. In addition, the fund purchased and sold investment securities of $2,575,128,000 and $2,752,595,000, respectively, in connection with in-kind purchases and redemptions of the fund's capital shares.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended July 31, 2024, such purchases were $0 and sales were $5,189,000, resulting in net realized loss of $673,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

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

	Six Months Ended July 31, 2024		Year Ended January 31, 2024
	Amount ($000)	Shares (000)		Amount ($000)	Shares (000)
Investor Shares
Issued	3,817	135		7,901	286
Issued in Lieu of Cash Distributions	1,602	57		3,865	145
Redeemed	(14,271)	(511)		(42,581)	(1,536)
Net Increase (Decrease)-Investor Shares	(8,852)	(319)		(30,815)	(1,105)
ETF Shares
Issued	2,631,449	31,110		5,219,768	62,577
Issued in Lieu of Cash Distributions	-	-		-	-
Redeemed	(2,755,617)	(33,000)		(6,635,708)	(81,500)
Net Increase (Decrease)-ETF Shares	(124,168)	(1,890)		(1,415,940)	(18,923)
Admiral Shares
Issued	1,127,309	9,459		2,321,785	19,988
Issued in Lieu of Cash Distributions	363,027	3,045		735,078	6,445
Redeemed	(1,890,860)	(15,840)		(3,573,063)	(30,661)
Net Increase (Decrease)-Admiral Shares	(400,524)	(3,336)		(516,200)	(4,228)
Institutional Shares
Issued	989,114	53,823		1,713,612	95,042
Issued in Lieu of Cash Distributions	204,152	11,064		384,847	21,798
Redeemed	(896,672)	(48,621)		(2,017,966)	(111,179)
Net Increase (Decrease)-Institutional Shares	296,594	16,266		80,493	5,661

G. Transactions during the period in investments where the issuer is another member of The Vanguard Group were as follows:

		Current Period Transactions
	Jan. 31, 2024 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)	Jul. 31, 2024 Market Value ($000)
Vanguard Market Liquidity Fund	488,498	NA1	NA1	15	(36)	3,709	-	489,260
Vanguard Real Estate II Index Fund	8,159,403	172,480	-	-	636,035	172,480	-	8,967,918
Total	8,647,901	172,480	-	15	635,999	176,189	-	9,457,178

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, 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.

I. Management has determined that no events or transactions occurred subsequent to July 31, 2024, that would require recognition or disclosure in these financial statements.

Schedule of Investments

As of July 31, 2024

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

					Shares	Market Value• ($000)
Equity Real Estate Investment Trusts (REITs) (92.0%)
Data Center REITs (8.5%)
	Equinix Inc.	611,792	483,462
	Digital Realty Trust Inc.	2,013,155	300,947
						784,409
Diversified REITs (2.0%)
	WP Carey Inc.	1,409,685	81,494
	Essential Properties Realty Trust Inc.	1,091,948	32,311
	Broadstone Net Lease Inc.	1,210,443	21,074
	Global Net Lease Inc.	1,265,015	11,006
	Empire State Realty Trust Inc. Class A	892,309	9,610
	Alexander & Baldwin Inc.	467,550	9,215
	American Assets Trust Inc.	314,424	8,338
	Armada Hoffler Properties Inc.	430,210	5,111
	Gladstone Commercial Corp.	259,238	3,902
	One Liberty Properties Inc.	110,423	2,914
	NexPoint Diversified Real Estate Trust	215,916	1,367
						186,342
Health Care REITs (10.5%)
	Welltower Inc.	3,667,237	407,980
	Ventas Inc.	2,594,589	141,249
	Alexandria Real Estate Equities Inc.	916,921	107,546
	Healthpeak Properties Inc.	4,573,672	99,798
	Omega Healthcare Investors Inc.	1,581,038	57,550
	Healthcare Realty Trust Inc. Class A	2,457,029	43,465
	Sabra Health Care REIT Inc.	1,492,113	24,217
	CareTrust REIT Inc.	870,348	23,465
	National Health Investors Inc.	279,979	20,959
1	Medical Properties Trust Inc.	3,863,016	18,581
	LTC Properties Inc.	279,484	9,980
	Community Healthcare Trust Inc.	179,148	3,898
	Global Medical REIT Inc.	403,948	3,858
	Diversified Healthcare Trust	1,089,801	3,640
	Universal Health Realty Income Trust	84,196	3,599
						969,785
Hotel & Resort REITs (2.4%)
	Host Hotels & Resorts Inc.	4,534,859	79,405
	Ryman Hospitality Properties Inc.	365,631	36,749
	Apple Hospitality REIT Inc.	1,484,163	21,951
	Park Hotels & Resorts Inc.	957,283	14,417
	Sunstone Hotel Investors Inc.	1,249,303	12,943
	DiamondRock Hospitality Co.	1,353,764	11,141
	Pebblebrook Hotel Trust	777,112	10,639
	RLJ Lodging Trust	1,003,347	9,471
	Xenia Hotels & Resorts Inc.	658,642	9,142
	Service Properties Trust	1,068,926	6,061
	Summit Hotel Properties Inc.	690,792	4,380
	Chatham Lodging Trust	314,329	2,763
						219,062
Industrial REITs (12.0%)
	Prologis Inc.	5,963,231	751,665
	Rexford Industrial Realty Inc.	1,404,074	70,358
	EastGroup Properties Inc.	309,132	57,805
	Americold Realty Trust Inc.	1,739,442	51,992
	STAG Industrial Inc.	1,172,107	47,834
	First Industrial Realty Trust Inc.	853,098	46,682
	Terreno Realty Corp.	619,331	42,368
	Innovative Industrial Properties Inc.	181,854	22,333
	LXP Industrial Trust	1,897,879	19,548
	Plymouth Industrial REIT Inc.	263,818	6,311

					Shares	Market Value• ($000)
Temporary Cash Investments (0.6%)
Money Market Fund (0.6%)
3,4	Vanguard Market Liquidity Fund, 5.390% (Cost $52,720)	527,275	52,722
Total Investments (100.2%) (Cost $7,955,382)		9,296,173
Other Assets and Liabilities-Net (-0.2%)		(18,310)
Net Assets (100%)		9,277,863

Cost is in $000.

•	See Note A in Notes to Financial Statements.

*	Non-income-producing security.
1	Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $18,364,000.
2	Security value determined using significant unobservable inputs.
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 $21,710,000 was received for securities on loan.

REIT-Real Estate Investment Trust.

Derivative Financial Instruments Outstanding as of Period End

Over-the-Counter Total Return Swaps
Reference Entity	Termination Date	Counterparty	Notional Amount ($000)	Floating Interest Rate Received (Paid)1 (%)	Value and Unrealized Appreciation ($000)	Value and Unrealized (Depreciation) ($000)
Alexandria Real Estate Equities Inc.	1/31/25	CITNA	11,463	(5.331)	108	-
Park Hotels & Resorts Inc.	1/31/25	GSI	5,932	(5.332)	79	-
Realty Income Corp.	8/30/24	BANA	15,846	(5.431)	1,390	-
					1,577	-

1	Based on USD Overnight Bank Funding Rate as of the most recent reset date. Floating interest payment received/paid monthly.
	BANA-Bank of America, N.A.
	CITNA-Citibank, N.A.
	GSI-Goldman Sachs International.

At July 31, 2024, the counterparties had deposited in segregated accounts securities with a value of $1,845,000 in connection with open over-the-counter swap contracts.

	Six Months Ended July 31, 2024
	($000)
Investment Income
Income
Dividends	125,869
Interest1	458
Securities Lending-Net	224
Total Income	126,551
Expenses
The Vanguard Group-Note B
Investment Advisory Services	70
Management and Administrative	3,196
Marketing and Distribution	69
Custodian Fees	44
Shareholders' Reports	8
Trustees' Fees and Expenses	2
Other Expenses	8
Total Expenses	3,397
Net Investment Income	123,154
Realized Net Gain (Loss)
Capital Gain Distributions Received	20,253
Investment Securities Sold1	(20,990)
Swap Contracts	(2,224)
Realized Net Gain (Loss)	(2,961)
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	716,096
Swap Contracts	2,407
Change in Unrealized Appreciation (Depreciation)	718,503
Net Increase (Decrease) in Net Assets Resulting from Operations	838,696

1	Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $458,000, $3,000, and ($2,000), respectively. Purchases and sales are for temporary cash investment purposes.

For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2024	Year Ended January 31,
2024	2023	2022	2021	2020
Net Asset Value, Beginning of Period	$20.16	$21.86	$25.69	$20.50	$22.64	$20.10
Investment Operations
Net Investment Income1	.292	.620	.558	.484	.471	.571
Net Realized and Unrealized Gain (Loss) on Investments	1.672	(1.476)	(3.493)	5.427	(1.808)	2.752
Total from Investment Operations	1.964	(.856)	(2.935)	5.911	(1.337)	3.323
Distributions
Dividends from Net Investment Income	(.424)	(.625)	(.528)	(.477)	(.465)	(.590)
Distributions from Realized Capital Gains	-	-	(.238)	(.034)	-	-
Return of Capital	-	(.219)	(.129)	(.210)	(.338)	(.193)
Total Distributions	(.424)	(.844)	(.895)	(.721)	(.803)	(.783)
Net Asset Value, End of Period	$21.70	$20.16	$21.86	$25.69	$20.50	$22.64
Total Return	9.91%	-3.68%	-11.23%	28.96%	-5.70%	16.78%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$9,278	$8,426	$8,690	$9,542	$7,400	$7,848
Ratio of Total Expenses to Average Net Assets	0.08%	0.08%	0.08%2	0.08%	0.08%	0.08%
Ratio of Net Investment Income to Average Net Assets	2.90%	3.14%	2.47%	1.95%	2.41%	2.63%
Portfolio Turnover Rate	2%	6%	5%3	6%	4%	3%
The expense ratio and net investment income ratio for the current period have been annualized.

1	Calculated based on average shares outstanding.
2	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.08%.
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.

Vanguard Real Estate II Index Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund is a wholly owned subsidiary of Vanguard Real Estate Index Fund ("Real Estate Index Fund"), and at July 31, 2024, the Real Estate Index Fund was the record and beneficial owner of 96.7% of the fund's net assets. As part of the Real Estate Index Fund's principal investment strategy, it attempts to replicate the benchmark index by investing all, or substantially all, of its assets-either directly or indirectly through the fund-in the stocks that make up the index.

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees.

Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.

2. Swap Contracts: The fund has entered into equity swap contracts to earn the total return on selected reference stocks or indexes in the fund's target index. Under the terms of the swaps, the fund receives the total return on the referenced stock (i.e., receiving the increase or paying the decrease in value of the selected reference stock and receiving the equivalent of any dividends in respect of the selected referenced stock) over a specified period of time, applied to a notional amount that represents the value of a designated number of shares of the selected reference stock at the beginning of the equity swap contract. The fund also pays a floating rate that is based on short-term interest rates, applied to the notional amount. At the same time, the fund generally invests an amount approximating the notional amount of the swap in high-quality temporary cash investments.

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

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

During the six months ended July 31, 2024, 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.

3. 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.

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. The portion of distributions that exceed a fund's current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

5. 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.

6. 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 an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. 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 July 31, 2024, the fund did not utilize the credit facilities or the Interfund Lending Program.

7. Other: Distributions received from investment securities are recorded on the ex-dividend date. Non-cash dividends included in income, if any, are recorded at the fair value of the securities received. Each investment security reports annually the tax character of its distributions. Dividend income, capital gain distributions received, and unrealized appreciation (depreciation) reflect the amounts of taxable income, capital gain, and return of capital reported by the REITs, and management's estimates of such amounts for REIT distributions for which actual information has not been reported. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

B. In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees 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 July 31, 2024, the fund had contributed to Vanguard capital in the amount of $249,000, 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.

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

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

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

Level 3-Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments and derivatives valued with significant unobservable inputs are noted on the Schedule of Investments.

The following table summarizes the market value of the fund's investments and derivatives as of July 31, 2024, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
Common Stocks	9,243,428	-	23	9,243,451
Temporary Cash Investments	52,722	-	-	52,722
Total	9,296,150	-	23	9,296,173
Derivative Financial Instruments
Assets
Swap Contracts	-	1,577	-	1,577

D. As of July 31, 2024, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount ($000)
Tax Cost	8,011,698
Gross Unrealized Appreciation	2,199,668
Gross Unrealized Depreciation	(913,616)
Net Unrealized Appreciation (Depreciation)	1,286,052

The fund's tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2024, the fund had available capital losses totaling $59,114,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2025; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

E. During the six months ended July 31, 2024, the fund purchased $309,856,000 of investment securities and sold $148,549,000 of investment securities, other than temporary cash investments.

The fund purchased securities from and sold securities to other Vanguard funds or accounts managed by Vanguard or its affiliates, in accordance with procedures adopted by the board of trustees in compliance with Rule 17a-7 of the Investment Company Act of 1940. For the six months ended July 31, 2024, such purchases were $0 and sales were $824,000, resulting in net realized loss of $12,000; these amounts, other than temporary cash investments, are included in the purchases and sales of investment securities noted above.

F. Capital shares issued and redeemed were:

	Six Months Ended July 31, 2024		Year Ended January 31, 2024
	Shares (000)		Shares (000)
Issued	1,282		3,562
Issued in Lieu of Cash Distributions	8,834		17,762
Redeemed	(573)		(786)
Net Increase (Decrease) in Shares Outstanding	9,543		20,538

G. Significant market disruptions, such as those caused by pandemics, natural or environmental ‎disasters, war, acts of terrorism, 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.

H. Management has determined that no events or transactions occurred subsequent to July 31, 2024, that would require recognition or disclosure in these financial statements.

Q1232 092024

Schedule of Investments

As of July 31, 2024

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

			Coupon	Maturity Date	Face Amount ($000)	Market Value• ($000)
U.S. Government and Agency Obligations (98.5%)
U.S. Government Securities (0.6%)
	United States Treasury Inflation Indexed Bonds	1.750%	1/15/34	87,174	86,388
Conventional Mortgage-Backed Securities (92.7%)
1,2	Fannie Mae Pool	2.120%	5/1/31	20,825	18,134
1,2	Fannie Mae Pool	2.250%	4/1/33	27,145	23,042
1,2	Fannie Mae Pool	2.690%	3/1/37	7,842	6,594
1,2	Fannie Mae Pool	2.950%	6/1/31	1,893	1,739
1,2	Fannie Mae Pool	2.960%	6/1/31	2,242	2,068
1,2	Fannie Mae Pool	3.000%	6/1/43	31,172	28,244
1,2	Fannie Mae Pool	3.010%	8/1/34	2,045	1,809
1,2	Fannie Mae Pool	3.050%	7/1/31	1,939	1,790
1,2	Fannie Mae Pool	3.240%	3/1/28	5,743	5,548
1,2	Fannie Mae Pool	3.260%	12/1/37	4,175	3,642
1,2	Fannie Mae Pool	3.410%	5/1/32	4,100	3,833
1,2	Fannie Mae Pool	3.420%	4/1/31	1,295	1,225
1,2	Fannie Mae Pool	3.460%	9/1/29	6,049	5,824
1,2	Fannie Mae Pool	3.520%	11/1/32	21,125	19,807
1,2	Fannie Mae Pool	4.125%	6/1/28	28,792	28,560
1,2	Fannie Mae Pool	4.260%	3/1/29	21,795	21,670
1,2	Fannie Mae Pool	4.370%	5/1/28	18,127	18,134
1,2	Fannie Mae Pool	4.625%	6/1/28	16,874	17,028
1,2	Fannie Mae Pool	4.820%	4/1/29	36,835	37,481
1,2	Fannie Mae Pool	5.170%	2/1/29	4,590	4,725
1,2	Fannie Mae Pool	5.200%	3/1/29	21,784	22,462
1,2	Freddie Mac Gold Pool	3.000%	6/1/43-1/1/47	7,534	6,753
1,2	Freddie Mac Gold Pool	3.500%	11/1/47-8/1/48	1,398	1,288
1,2	Freddie Mac Gold Pool	4.000%	9/1/30-4/1/44	1,654	1,600
1,2	Freddie Mac Gold Pool	4.500%	4/1/34-2/1/46	18,036	17,858
1,2	Freddie Mac Gold Pool	5.000%	1/1/38-4/1/44	6,406	6,486
1	Ginnie Mae I Pool	2.500%	11/15/42-12/15/46	43,461	38,412
1	Ginnie Mae I Pool	3.000%	1/15/26-3/15/46	330,439	301,086
1	Ginnie Mae I Pool	3.250%	8/15/42	7,840	7,249
1	Ginnie Mae I Pool	3.500%	7/15/39-6/15/48	283,731	266,465
1	Ginnie Mae I Pool	3.750%	7/15/42	926	876
1	Ginnie Mae I Pool	3.875%	10/15/40-6/15/42	12,887	12,310
1	Ginnie Mae I Pool	4.000%	8/15/24-7/15/46	376,824	364,078
1	Ginnie Mae I Pool	4.500%	4/15/33-4/15/44	196,651	194,419
1	Ginnie Mae I Pool	5.000%	11/15/32-7/15/52	177,247	178,224
1	Ginnie Mae I Pool	5.500%	5/15/28-9/15/45	136,131	138,914
1	Ginnie Mae I Pool	6.000%	12/15/27-3/15/40	52,474	53,747
1	Ginnie Mae I Pool	6.500%	3/15/25-7/15/40	48,214	50,186
1	Ginnie Mae I Pool	7.000%	11/15/31-11/15/36	6,043	6,159
1	Ginnie Mae I Pool	7.250%	1/15/27	4	4
1	Ginnie Mae I Pool	7.500%	10/15/31	3,146	3,231
1	Ginnie Mae I Pool	8.000%	8/15/31	1,161	1,209
1	Ginnie Mae I Pool	8.500%	11/15/26	1	1
1	Ginnie Mae II Pool	1.500%	4/20/44-4/20/52	131,585	105,327
1,3,4	Ginnie Mae II Pool	2.000%	10/20/43-8/15/54	2,702,870	2,243,623
1,3,4	Ginnie Mae II Pool	2.500%	6/20/37-8/15/54	2,579,002	2,225,928
1,3,4	Ginnie Mae II Pool	3.000%	4/20/31-8/15/54	1,858,984	1,672,467
1,3,4,5	Ginnie Mae II Pool	3.500%	10/20/40-8/15/54	1,709,517	1,592,483
1,4	Ginnie Mae II Pool	4.000%	4/20/39-8/15/54	701,972	672,226
1,4	Ginnie Mae II Pool	4.500%	12/20/32-8/15/54	541,823	530,872
1,4	Ginnie Mae II Pool	5.000%	10/20/32-8/15/54	690,127	684,806
1,4	Ginnie Mae II Pool	5.500%	1/20/34-8/15/54	427,609	429,198
1,4	Ginnie Mae II Pool	6.000%	4/20/28-8/15/54	583,357	590,611
1,4	Ginnie Mae II Pool	6.500%	4/20/37-8/15/54	210,824	214,856
1	Ginnie Mae II Pool	7.500%	6/20/25-8/20/25	5	5
1,2,4	UMBS Pool	2.000%	11/1/46-8/25/54	3,715	3,011
1,2,4	UMBS Pool	2.500%	7/1/27-8/25/54	91,739	78,183

			Coupon		Shares	Market Value• ($000)
Temporary Cash Investments (1.1%)
Money Market Fund (0.2%)
7	Vanguard Market Liquidity Fund	5.390%		248,947	24,892
				Maturity Date	Face Amount ($000)
Repurchase Agreements (0.9%)
	Bank of America Securities, LLC (Dated 7/31/24, Repurchase Value $10,202,000, collateralized by Fannie Mae 1.500%-4.500%, 4/1/26-8/1/53, and Freddie Mac 3.000%-6.000%, 10/1/26-6/1/54, with a value of $10,404,000)	5.350%	8/1/24	10,200	10,200
	Bank of Nova Scotia (Dated 7/31/24, Repurchase Value $10,802,000, collateralized by U.S. Treasury Note/Bond 0.375%-4.750%, 8/31/26-11/15/53, with a value of $11,018,000)	5.340%	8/1/24	10,800	10,800
	Barclays Capital Inc. (Dated 7/31/24, Repurchase Value $16,602,000, collateralized by U.S. Treasury Note/Bond 4.375%, 12/15/26, with a value of $16,932,000)	5.340%	8/1/24	16,600	16,600
	Citigroup Global Markets Inc. (Dated 7/31/24, Repurchase Value $15,502,000, collateralized by U.S. Treasury Note/Bond 1.250%, 12/31/26, with a value of $15,810,000)	5.330%	8/1/24	15,500	15,500
	Credit Agricole Securities (USA) Inc. (Dated 7/31/24, Repurchase Value $10,802,000, collateralized by Treasury Inflation Indexed Note/Bond 1.250%, 4/15/28, with a value of $11,016,000)	5.340%	8/1/24	10,800	10,800
	HSBC Bank USA (Dated 7/31/24, Repurchase Value $12,202,000, collateralized by U.S. Treasury Bill 0.000%, 11/19/24-6/12/25, with a value of $12,444,000)	5.340%	8/1/24	12,200	12,200
	HSBC Bank USA (Dated 7/31/24, Repurchase Value $14,702,000, collateralized by Fannie Mae 5.500%, 6/1/53, with a value of $14,994,000)	5.350%	8/1/24	14,700	14,700
	JP Morgan Securities LLC (Dated 7/31/24, Repurchase Value $2,000,000, collateralized by U.S. Treasury Bill 0.000%, 10/1/24-6/12/25, and U.S. Treasury Note/Bond 2.625%-4.750%, 3/15/27-2/15/41, with a value of $2,040,000)	5.340%	8/1/24	2,000	2,000
	Natixis SA (Dated 7/31/24, Repurchase Value $12,402,000, collateralized by Federal Home Loan Bank 4.000%, 10/24/29, Treasury Inflation Indexed Note/Bond 0.125%-3.625%, 4/15/28-2/15/52, and U.S. Treasury Note/Bond 4.625%-6.125%, 11/15/27-5/15/54, with a value of $12,648,000)	5.340%	8/1/24	12,400	12,400
	Societe Generale (Dated 7/31/24, Repurchase Value $11,502,000, collateralized by U.S. Treasury Bill 0.000%, 9/3/24, with a value of $11,730,000)	5.340%	8/1/24	11,500	11,500
	TD Securities (USA) LLC (Dated 7/31/24, Repurchase Value $10,402,000, collateralized by U.S. Treasury Note/Bond 4.375%, 8/15/43, with a value of $10,608,000)	5.340%	8/1/24	10,400	10,400
	Wells Fargo & Co. (Dated 7/31/24, Repurchase Value $12,102,000, collateralized by Freddie Mac 1.500%-7.500%, 11/1/27-8/1/54, with a value of $12,342,000)	5.350%	8/1/24	12,100	12,100
						139,200
Total Temporary Cash Investments (Cost $164,090)	164,092
Total Investments (100.6%) (Cost $16,245,668)		14,968,582
Other Assets and Liabilities-Net (-0.6%)		(86,841)
Net Assets (100%)		14,881,741

Cost is in $000.

•	See Note A in Notes to Financial Statements.

1	The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.
2	The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.
3	Securities with a value of $7,894,000 have been segregated as collateral for certain open To Be Announced (TBA) transactions.
4	Includes securities purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of July 31, 2024.
5	Securities with a value of $11,848,000 have been segregated as initial margin for open futures contracts.
6	Variable-rate security; rate shown is effective rate at period end. Certain variable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.
7	Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

	REMICS-Real Estate Mortgage Investment Conduits.
	RFUCCT1Y-Refinitiv USD IBOR Consumer Cash Fallbacks Term 1-year.
	TSFR1M-CME Term Secured Overnight Financing Rate 1-Month.
	UMBS-Uniform Mortgage-Backed Securities.

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
2-Year U.S. Treasury Note	September 2024	1,398	287,104	2,456
5-Year U.S. Treasury Note	September 2024	839	90,520	1,608
10-Year U.S. Treasury Note	September 2024	1,650	184,491	2,487
Ultra Long U.S. Treasury Bond	September 2024	86	11,005	380
				6,931
Short Futures Contracts
Long U.S. Treasury Bond	September 2024	(2,176)	(262,820)	(8,246)
Ultra 10-Year U.S. Treasury Note	September 2024	(2,136)	(246,875)	(7,038)
				(15,284)
				(8,353)

	Six Months Ended July 31, 2024
	($000)
Investment Income
Income
Interest1	278,141
Total Income	278,141
Expenses
Investment Advisory Fees-Note B	812
The Vanguard Group-Note C
Management and Administrative-Investor Shares	4,743
Management and Administrative-Admiral Shares	4,523
Marketing and Distribution-Investor Shares	98
Marketing and Distribution-Admiral Shares	215
Custodian Fees	166
Shareholders' Reports-Investor Shares	61
Shareholders' Reports-Admiral Shares	54
Trustees' Fees and Expenses	4
Other Expenses	8
Total Expenses	10,684
Net Investment Income	267,457
Realized Net Gain (Loss)
Investment Securities Sold1	(48,319)
Futures Contracts	(1,790)
Realized Net Gain (Loss)	(50,109)
Change in Unrealized Appreciation (Depreciation)
Investment Securities1	58,149
Futures Contracts	6,810
Change in Unrealized Appreciation (Depreciation)	64,959
Net Increase (Decrease) in Net Assets Resulting from Operations	282,307

1	Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $2,761,000, ($9,000), and $9,000, respectively. Purchases and sales are for temporary cash investment purposes.

Investor Shares
For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2024	Year Ended January 31,
2024	2023	2022	2021	2020
Net Asset Value, Beginning of Period	$9.28	$9.44	$10.41	$10.73	$10.58	$10.31
Investment Operations
Net Investment Income1	.161	.304	.230	.085	.178	.285
Net Realized and Unrealized Gain (Loss) on Investments	.010	(.160)	(.969)	(.321)	.157	.272
Total from Investment Operations	.171	.144	(.739)	(.236)	.335	.557
Distributions
Dividends from Net Investment Income	(.161)	(.304)	(.231)	(.084)	(.176)	(.287)
Distributions from Realized Capital Gains	-	-	-	-	-	-
Return of Capital	-	-	-	-	(.009)	-
Total Distributions	(.161)	(.304)	(.231)	(.084)	(.185)	(.287)
Net Asset Value, End of Period	$9.29	$9.28	$9.44	$10.41	$10.73	$10.58
Total Return2	1.89%	1.62%	-7.09%	-2.21%	3.17%	5.46%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$5,058	$5,157	$5,270	$6,711	$7,719	$7,365
Ratio of Total Expenses to Average Net Assets	0.21%	0.21%3	0.21%3	0.21%	0.21%	0.21%
Ratio of Net Investment Income to Average Net Assets	3.55%	3.33%	2.40%	0.80%	1.66%	2.71%
Portfolio Turnover Rate4	178%	305%	478%	800%	638%	616%
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	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.21%.
4	Includes 122%, 180%, 206%, 298%, 182%, and 198%, respectively, attributable to mortgage-dollar-roll activity.

Admiral Shares
For a Share Outstanding Throughout Each Period	Six Months Ended July 31, 2024	Year Ended January 31,
2024	2023	2022	2021	2020
Net Asset Value, Beginning of Period	$9.28	$9.44	$10.41	$10.73	$10.58	$10.31
Investment Operations
Net Investment Income1	.165	.313	.239	.098	.184	.295
Net Realized and Unrealized Gain (Loss) on Investments	.010	(.160)	(.969)	(.323)	.161	.272
Total from Investment Operations	.175	.153	(.730)	(.225)	.345	.567
Distributions
Dividends from Net Investment Income	(.165)	(.313)	(.240)	(.095)	(.185)	(.297)
Distributions from Realized Capital Gains	-	-	-	-	-	-
Return of Capital	-	-	-	-	(.010)	-
Total Distributions	(.165)	(.313)	(.240)	(.095)	(.195)	(.297)
Net Asset Value, End of Period	$9.29	$9.28	$9.44	$10.41	$10.73	$10.58
Total Return2	1.94%	1.73%	-7.00%	-2.11%	3.28%	5.57%
Ratios/Supplemental Data
Net Assets, End of Period (Millions)	$9,824	$10,233	$11,685	$15,587	$19,602	$17,356
Ratio of Total Expenses to Average Net Assets	0.11%	0.11%3	0.11%3	0.11%	0.11%	0.11%
Ratio of Net Investment Income to Average Net Assets	3.65%	3.42%	2.49%	0.92%	1.72%	2.81%
Portfolio Turnover Rate4	178%	305%	478%	800%	638%	616%
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	The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.11%.
4	Includes 122%, 180%, 206%, 298%, 182%, and 198%, respectively, attributable to mortgage-dollar-roll activity.

Vanguard GNMA Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Investor Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors.

A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Bonds and other temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral, as furnished by independent pricing services. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities' primary markets, are valued by methods deemed by the valuation designee to represent fair value and subject to oversight by the board of trustees.

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

At July 31, 2024, counterparties had deposited in segregated accounts securities with a value of $795,000 and cash of $1,205,000 in connection with TBA transactions.

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

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

5. Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund's performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any 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 July 31, 2024, the fund's average investments in long and short futures contracts represented 4% and 3% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

6. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute 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.

7. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month. Annual distributions from realized capital gains, if any, are recorded on the ex-dividend date. The portion of distributions that exceed a fund's current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Distributions are determined on a tax basis at the fiscal year-end and may differ from net investment income and realized capital gains for financial reporting purposes.

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 an agreed-upon spread plus the higher of the federal funds effective rate, the overnight bank funding rate, or the Daily Simple Secured Overnight Financing Rate inclusive of an additional agreed-upon spread. 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 July 31, 2024, the fund did not utilize the credit facilities or the Interfund Lending Program.

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

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

B. Wellington Management Company llpprovides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. For the six months ended July 31, 2024, the investment advisory fee represented an effective annual basic rate of 0.01% of the fund's average net assets.

C. In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, and distribution services at Vanguard's cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees 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 July 31, 2024, the fund had contributed to Vanguard capital in the amount of $425,000, representing less than 0.01% of the fund's net assets and 0.17% of Vanguard's capital received pursuant to the FSA. The fund's trustees and officers are also directors and employees, respectively, of Vanguard.

D. Various inputs may be used to determine the value of the fund's investments 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 July 31, 2024, based on the inputs used to value them:

	Level 1 ($000)	Level 2 ($000)	Level 3 ($000)	Total ($000)
Investments
Assets
U.S. Government and Agency Obligations	-	14,660,890	-	14,660,890
Asset-Backed/Commercial Mortgage-Backed Securities	-	143,600	-	143,600
Temporary Cash Investments	24,892	139,200	-	164,092
Total	24,892	14,943,690	-	14,968,582
Derivative Financial Instruments
Assets
Futures Contracts1	6,931	-	-	6,931
Liabilities
Futures Contracts1	15,284	-	-	15,284

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. As of July 31, 2024, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Amount ($000)
Tax Cost	16,262,282
Gross Unrealized Appreciation	78,154
Gross Unrealized Depreciation	(1,380,207)
Net Unrealized Appreciation (Depreciation)	(1,302,053)

The fund's tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at January 31, 2024, the fund had available capital losses totaling $1,362,558,000 that may be carried forward indefinitely to offset future net capital gains. The fund will use these capital losses to offset net taxable capital gains, if any, realized during the year ending January 31, 2025; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above.

F. During the six months ended July 31, 2024, the fund purchased $26,020,646,000 of investment securities and sold $26,310,745,000 of investment securities, other than temporary cash investments.

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

	Six Months Ended July 31, 2024		Year Ended January 31, 2024
	Amount ($000)	Shares (000)		Amount ($000)	Shares (000)
Investor Shares
Issued	41,900	4,599		347,914	38,502
Issued in Lieu of Cash Distributions	84,638	9,304		160,202	17,531
Redeemed	(231,990)	(25,483)		(533,414)	(58,335)
Net Increase (Decrease)-Investor Shares	(105,452)	(11,580)		(25,298)	(2,302)
Admiral Shares
Issued	463,919	50,932		1,358,325	148,334
Issued in Lieu of Cash Distributions	136,739	15,032		281,905	30,844
Redeemed	(1,019,255)	(111,883)		(2,848,646)	(313,873)
Net Increase (Decrease)-Admiral Shares	(418,597)	(45,919)		(1,208,416)	(134,695)