Vanguard Product Summary Seeks to track FTSE All Cap ex. International equity diversified across growth and value styles. markets in Canada and the major markets of Europe and the Pacific region. Passively managed, full-replication approach. Fund remains fully invested. Low expenses minimize net tracking error Vanguard Style View : Foreign Large Blend Diversified index portfolio of non-u.s. stocks representing the major foreign equity markets. Market capitalization Large Mid Small Market Dvlp Emrg Central tendency Expected range of fund holdings Quarterly Commentary During the third quarter ended September 30, global stock markets continued their upward trajectory. The United States, Europe, Asia, and the United Kingdom posted positive results. But emerging markets led the way, bolstered by strong earnings growth and a weaker U.S. dollar. Demand for bonds helped boost global fixed income returns even as investors flocked to equities. Accommodative monetary policies outside the United States also supported bond prices, although recent central bank actions suggested a bias toward less accommodation going forward. The ex returned 5.67% for the three months. The FTSE Global All Cap ex, which measures developing and emerging markets outside of the United States, returned 6.02%. Financials (+5.4%), industrials (+7.4%), and consumer goods (+5.1%) were the top contributors. Telecommunications (+1.6%) added the least. For the 12 months ended September 30, 2017, the ex returned 19.33%. As they did for the quarter, all sectors contributed to performance, led by financials (+27.6%), industrials (+25.3%), and consumer goods (+17.7%). People and Process Vanguard seeks to track the performance of the FTSE All Cap ex, a market-capitalization-weighted index that is made up of approximately 3,700 common stocks of large-, mid-, and small-cap companies located in Canada and the major markets of Europe and the Pacific region. The fund attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. Vanguard s Equity Index Group uses proprietary software to implement trading decisions that accommodate cash flows and maintain close correlation with index characteristics. Vanguard s refined indexing process, combined with low management fees and efficient trading, has provided tight tracking net of expenses. Vanguard Equity Index Group Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world s largest equity and fixed income managers. As chief investment officer, Gregory Davis, CFA, oversees Vanguard s Equity Index, Quantitative Equity, and Fixed Income Groups. Joseph Brennan, CFA, Principal and global head of Vanguard's Equity Index Group, is responsible for all equity index funds. The Equity Index Group manages indexed equity portfolios covering U.S. and international markets. It has developed sophisticated portfolio construction methodologies and efficient trading strategies that seek to deliver returns that are highly correlated with target portfolio benchmarks. The group has advised Vanguard since 1999. Investment Manager Biographies Christine Franquin, Principal. Portfolio manager. Advised the fund since 2013. Worked in investment management since 2000. B.A., Universitaire Faculteiten Sint Ignatius, Antwerpen Belgium. J.D., University of Liege Belgium. Master of Science in Finance, Clark University, Massachusetts. Michelle Louie, CFA. Portfolio manager. Advised the fund since 2016. Worked in investment management since 2011. B.S., The American University. M.B.A., Georgia Institute of Technology. For institutional use only. Not for distribution to retail investors.
Vanguard Total Returns Quarter Year to Date 1 Year 3 Years 5 Years 10 Years Since Inception Investor (12/19/2013) 5.58% 20.97% 19.17% 5.76% 5.00% Admiral (8/17/1999) 5.49 21.01 19.27 5.87 8.92% 1.68% Institutional (1/4/2001) 5.56 21.08 19.33 5.88 8.94 1.72 Institutional Plus (4/1/2014) 5.55 21.10 19.31 5.91 4.23 ex 5.67 20.37 19.33 5.75 8.84 1.56 5.06 The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month end, visit our website at vanguard.com/performance. Figures for periods of less than one year are cumulative returns. All other figures represent average annual returns. Performance figures include the reinvestment of all dividends and any capital gains distributions. All returns are net of expenses. Note: ex : MSCI EAFE Index through May 28, 2013; FTSE ex North America Index through December 20, 2015; FTSE All Cap ex US Transition Index through May 31, 2016; FTSE All Cap ex thereafter. Benchmark returns are adjusted for withholding taxes. Admiral class shareholders are required to maintain specific minimum balances and meet other special criteria. Institutional class shareholders are required to maintain a minimum balance of $5 million.
Vanguard Quarterly Returns: Investor ex 2017 7.76% 6.34% 5.58% $970 2016-2.00-0.35 6.40-1.49% 2.36% 2.29% 875 2015 5.53 1.02-9.96 3.87-0.29-0.28 1,040 2014 0.38 4.23-6.06-4.18-5.82-4.85 1,331 2013 1 3.40 3.40 3.19 1 Since inception of the share class, 7/20/2007. Quarterly Returns: Admiral ex 2017 7.82% 6.39% 5.49% $13,855 2016-2.02-0.30 6.40-1.44% 2.45% 2.29% 9,702 2015 5.56 1.02-9.94 3.94-0.18-0.28 7,921 2014 0.47 4.25-6.09-4.10-5.66-4.85 6,068 2013 4.46-0.89 11.66 5.59 22.06 22.71 2,060 2012 11.48-7.06 6.36 7.58 18.56 17.32 1,425 2011 3.14 2.01-20.03 3.99-12.51-12.14 1,229 2010 1.21-14.71 17.57 6.77 8.36 7.75 1,476 2009-15.72 25.41 19.28 1.74 28.27 31.78 1,409 2008-8.34-2.48-18.90-18.99-41.27-43.38 1,131 2007 4.27 6.37 2.36-2.09 11.15 11.17 1,915 Quarterly Returns: Institutional ex 2017 7.81% 6.38% 5.56% $11,270 2016-2.01-0.21 6.30-1.44% 2.46% 2.29% 9,092 2015 5.55 1.02-9.93 3.95-0.17-0.28 8,093 2014 0.40 4.26-6.01-4.17-5.72-4.85 7,743 2013 4.45-0.88 11.74 5.59 22.15 22.71 482 2012 11.58-7.05 6.38 7.58 18.70 17.32 332 2011 3.05 2.01-20.02 3.93-12.62-12.14 294 2010 1.22-14.70 17.65 6.85 8.55 7.75 253 2009-15.61 25.37 19.26 1.81 28.48 31.78 219 2008-8.34-2.48-18.81-19.08-41.27-43.38 242 2007 4.34 6.36 2.35-2.09 11.21 11.17 568
Vanguard Quarterly Returns: Institutional Plus ex 2017 7.82% 6.41% 5.55% $9,466 2016-1.94-0.30 6.42-1.48% 2.50% 2.29% 7,444 2015 5.51 1.06-9.96 3.94-0.21-0.28 7,253 2014 2 3.59-6.05-4.10-6.67-5.77 5,918 2 Since inception of the share class, 4/1/2014. Fund Facts Investor Admiral Institutional Institutional Plus Fund Number 1397 0127 0137 1457 0936 Ticker VDVIX VTMGX VTMNX VDIPX VEA Newspaper Listing TxMInInv TxMIn TxMInist TxMInInPl VangEurpPacfc CUSIP Number 92206J107 921943809 921943882 92206J206 921943858 (millions) (Total $98,450) $970 $13,855 $11,270 $9,466 $62,888 Inception 12/19/2013 8/17/1999 1/4/2001 4/1/2014 7/20/2007 Expense Ratio (as of 4/2017) 0.17% 0.07% 0.06% 0.05% 0.07% ETF Equity Characteristics FTSE All Cap ex Number of stocks 3,870 3,790 Median market cap $29.1 Billion $29.1 Billion Price/earnings ratio 16.2x 16.2x Price/book ratio 1.7x 1.7x Return on equity 11.2% 11.2% Earnings growth rate 5.9% 5.9% Equity yield (dividend) 2.9% 2.9% Short-term reserves 0.0% Turnover rate (fiscal year end) 11.1% Volatility Measures R-Squared Beta ex 0.97 0.93 FTSE Global All Cap ex 0.95 0.92 R-squared and beta are calculated from trailing 36-month fund returns relative to the associated benchmark. Top 10 Largest Holdings % of Total Net Nestle SA 1.3% Royal Dutch Shell plc 1.3 Samsung Electronics Co. Ltd. 1.3 Novartis AG 1.0 HSBC Holdings plc 1.0 Roche Holding AG 1.0 Unilever 0.8 Toyota Motor Corp. 0.8 British American Tobacco plc 0.7 BP plc 0.6 Total 9.8% The holdings listed exclude any temporary cash investments and equity index products.
Vanguard Sector Diversification (% of Stocks) FTSE All Cap ex Overweight/ Underweight Basic Materials 8.0% 8.0% 0.0 Consumer Goods 17.6 17.6 0.0 Consumer Services 7.9 7.9 0.0 Financials 25.0 25.0 0.0 Health Care 8.5 8.5 0.0 Industrials 16.2 16.2 0.0 Oil & Gas 5.9 5.9 0.0 Other 0.0 0.0 0.0 Technology 4.3 4.3 0.0 Telecommunications 3.4 3.4 0.0 Utilities 3.2 3.2 0.0 Total 100.0% 100.0% Sector categories are based on the Industry Classification Benchmark (ICB), except for the Other category (if applicable), which includes securities that have not been provided an ICB classification as of the effective reporting period.
Vanguard Country Diversification (% of Stocks) Europe Pacific United Kingdom 15.7% France 8.3 Germany 8.1 Switzerland 6.9 Netherlands 2.9 Spain 2.8 Sweden 2.8 Italy 2.4 Denmark 1.6 Belgium 1.1 Finland 1.0 Other 1.4 Subtotal 55.0 Japan 21.1% Australia 6.0 Korea 4.4 Hong Kong 3.2 Singapore 1.1 Other 0.3 Subtotal 36.1 North America Canada 8.4% Middle East Other 0.4% Other 0.1 Total 100.0%
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