Vanguard Russell 1000 Index Funds

Semiannual Report February 28, 2018 Vanguard Russell 1000 Index Funds Vanguard Russell 1000 Index Fund Vanguard Russell 1000 Value Index Fund Vanguard Russell 1000 Growth Index Fund

Vanguard s Principles for Investing Success We want to give you the best chance of investment success. These principles, grounded in Vanguard s research and experience, can put you on the right path. Goals. Create clear, appropriate investment goals. Balance. Develop a suitable asset allocation using broadly diversified funds. Cost. Minimize cost. Discipline. Maintain perspective and long-term discipline. A single theme unites these principles: Focus on the things you can control. We believe there is no wiser course for any investor. Contents Your Fund s Performance at a Glance.................. 1 CEO s Perspective................................. 3 Results of Proxy Voting............................. 6 Russell 1000 Index Fund............................ 8 Russell 1000 Value Index Fund...................... 23 Russell 1000 Growth Index Fund..................... 38 About Your Fund s Expenses........................ 53 Glossary........................................ 55 Please note: The opinions expressed in this report are just that informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus. See the Glossary for definitions of investment terms used in this report. About the cover: Nautical images have been part of Vanguard s rich heritage since its start in 1975. For an incoming ship, a lighthouse offers a beacon and safe path to shore. You can similarly depend on Vanguard to put you first and light the way as you strive to meet your financial goals. Our client focus and low costs, stemming from our unique ownership structure, assure that your interests are paramount.

Your Fund s Performance at a Glance For the six months ended February 28, 2018, results for the three funds reviewed in this report ranged from more than 7% for Vanguard Russell 1000 Value Index Fund to almost 14% for Vanguard Russell 1000 Growth Index Fund. Vanguard Russell 1000 Index Fund, which includes both growth and value stocks, returned more than 10%. The Index Fund and the Growth Index Fund exceeded the average returns of their peer groups. The Value Index Fund trailed its peer average. All three funds benefited from the performance of the technology, financial services, and consumer discretionary sectors. Utilities and consumer staples detracted from the performance of the Index and Value Index Funds. Those two sectors made the smallest, though still positive, contributions to the performance of the Growth Index Fund. Total Returns: Six Months Ended February 28, 2018 Total Returns Vanguard Russell 1000 Index Fund ETF Shares Market Price 10.65% Net Asset Value 10.55 Institutional Shares 10.57 Russell 1000 Index 10.62 Large-Cap Core Funds Average 10.13 Large-Cap Core Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. Vanguard Russell 1000 Value Index Fund ETF Shares Market Price 7.24% Net Asset Value 7.20 Institutional Shares 7.22 Russell 1000 Value Index 7.26 Large-Cap Value Funds Average 8.92 Large-Cap Value Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. 1

Total Returns Vanguard Russell 1000 Growth Index Fund ETF Shares Market Price 13.97% Net Asset Value 13.88 Institutional Shares 13.90 Russell 1000 Growth Index 13.94 Large-Cap Growth Funds Average 13.29 Large-Cap Growth Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. Institutional Shares are available to certain institutional investors who meet specific administrative, service, and account-size criteria. The Vanguard ETF Shares shown are traded on the Nasdaq exchange and are available only through brokers. The table provides ETF returns based on both the Nasdaq market price and the net asset value for a share. U.S. Pat. Nos. 6,879,964; 7,337,138; 7,720,749; 7,925,573; 8,090,646; and 8,417,623. For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York Stock Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about how the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, and then select the Price and Performance tab. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares' market price was above or below the NAV. Expense Ratios Your Fund Compared With Its Peer Group ETF Shares Institutional Shares Peer Group Average Russell 1000 Index Fund 0.12% 0.08% 1.03% Russell 1000 Value Index Fund 0.12 0.08 1.04 Russell 1000 Growth Index Fund 0.12 0.08 1.10 The fund expense ratios shown are from the prospectus dated December 21, 2017, and represent estimated costs for the current fiscal year. For the six months ended February 28, 2018, the funds annualized expense ratios were: for the Russell 1000 Index Fund, 0.12% for ETF Shares and 0.08% for Institutional Shares; for the Russell 1000 Value Index Fund, 0.12% for ETF Shares and 0.08% for Institutional Shares; and for the Russell 1000 Growth Index Fund, 0.12% for ETF Shares and 0.08% for Institutional Shares. Peer-group expense ratios are derived from data provided by Lipper, a Thomson Reuters Company, and capture information through year-end 2017. Peer groups: For the Russell 1000 Index Fund, Large-Cap Core Funds; for the Russell 1000 Value Index Fund, Large-Cap Value Funds; and for the Russell 1000 Growth Index Fund, Large-Cap Growth Funds. 2

CEO s Perspective Dear Shareholder, As I begin my tenure as Vanguard s fourth chief executive, I ve been reflecting on both the past and the future of the company where I have spent my entire professional career. Tim Buckley President and Chief Executive Officer I feel extremely fortunate to have the chance to lead a company filled with people who come to work every day passionate about Vanguard s core purpose: to take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. Making a real difference When I joined Vanguard in 1991, I found a mission-driven team focused on improving lives helping people retire more comfortably, put their children through college, and achieve financial security. I found a company with purpose in an industry ripe for improvement. It was clear, even early in my career, that the cards were stacked against most investors. Hidden fees, performancechasing, and poor advice were relentlessly eroding investors dreams. We knew Vanguard could be different and, as a result, could make a real difference. Over the past 25 years, for example, Vanguard has lowered our funds asset-weighted average expense ratio 3

from 0.31% to 0.12%. And over the past decade, 94% of our funds have beaten the average annual return of their peers. 1 Focused on your success Vanguard is built for Vanguard investors as a client-owned company, we focus solely on you, our fund shareholders. Everything we do is designed to give our clients the best chance for investment success. In my role as CEO, I intend to keep this priority front and center. We re proud of what we ve achieved, but we re even more excited about what s to come. As I write this, we ve experienced a period of pronounced market volatility. Strong economic growth and budding signs of inflation have raised concerns about a more aggressive Federal Reserve. Although volatility can test investors nerves, we sometimes think of this as Vanguard weather a time when having a disciplined, low-cost, and long-term approach to investment management serves investors well. Market Barometer Total Returns Periods Ended February 28, 2018 Six One Five Years Months Year (Annualized) Stocks Russell 1000 Index (Large-caps) 10.62% 16.70% 14.56% Russell 2000 Index (Small-caps) 8.30 10.51 12.19 Russell 3000 Index (Broad U.S. market) 10.45 16.22 14.37 FTSE All-World ex US Index (International) 7.84 21.50 6.69 Bonds Bloomberg Barclays U.S. Aggregate Bond Index (Broad taxable market) -2.18% 0.51% 1.71% Bloomberg Barclays Municipal Bond Index (Broad tax-exempt market) -1.24 2.50 2.57 Citigroup Three-Month U.S. Treasury Bill Index 0.59 0.98 0.27 CPI Consumer Price Index 1.41% 2.21% 1.41% The performance data shown represent past performance, which is not a guarantee of future results. 1 For the ten-year period through December 31, 2017, 9 of 9 Vanguard money market funds, 56 of 60 bond funds, 21 of 22 balanced funds, and 131 of 140 stock funds, or 217 of 231 Vanguard funds, outperformed their peer-group averages. Sources: Vanguard, based on data from Lipper, a Thomson Reuters Company. 4

Steady, time-tested guidance Our guidance for investors, as always, is to stay the course, tune out the hyperbolic headlines, and focus on your goals and what you can control, such as costs and how much you save. This time-tested advice has served our clients well over the decades. Regardless of how the markets perform in the short term, I m incredibly optimistic about the future for our investors. We have a dedicated team serving you, and we will never stop striving to make Vanguard the best place for you to invest through our high-quality funds and services, advice and guidance to help you meet your financial goals, and an experience that makes you feel good about entrusting us with your hard-earned savings. Thank you for your continued loyalty. Sincerely, Mortimer J. Buckley President and Chief Executive Officer March 19, 2018 5

Results of Proxy Voting At a special meeting of shareholders on November 15, 2017, fund shareholders approved the following proposals: Proposal 1 Elect trustees for the fund.* The individuals listed in the table below were elected as trustees for the fund. All trustees with the exception of Ms. Mulligan, Ms. Raskin, and Mr. Buckley (each of whom already serves as a director of The Vanguard Group, Inc.) served as trustees to the funds prior to the shareholder meeting. Percentage Trustee For Withheld For Mortimer J. Buckley 797,579,784 15,541,140 98.1% Emerson U. Fullwood 796,911,377 16,209,547 98.0% Amy Gutmann 796,611,379 16,509,545 98.0% JoAnn Heffernan Heisen 795,715,738 17,405,186 97.9% F. Joseph Loughrey 796,955,260 16,165,664 98.0% Mark Loughridge 797,027,324 16,093,600 98.0% Scott C. Malpass 797,191,317 15,929,607 98.0% F. William McNabb III 794,211,732 18,909,192 97.7% Deanna Mulligan 797,691,084 15,429,840 98.1% André F. Perold 793,048,517 20,072,408 97.5% Sarah Bloom Raskin 797,096,185 16,024,739 98.0% Peter F. Volanakis 796,849,973 16,270,951 98.0% * Results are for all funds within the same trust. Proposal 2 Approve a manager-of-managers arrangement with third-party investment advisors. This arrangement enables the fund to enter into and materially amend investment advisory arrangements with third-party investment advisors, subject to the approval of the fund s board of trustees and certain conditions imposed by the Securities and Exchange Commission, while avoiding the costs and delays associated with obtaining future shareholder approval. Broker Percentage Vanguard Fund For Abstain Against Non-Votes For Russell 1000 Growth Index Fund 8,561,508 306,783 337,322 2,263,999 74.6% Russell 1000 Index Fund 6,972,585 191,845 38,546 1,186,495 83.1% Russell 1000 Value Index Fund 8,799,295 332,770 297,639 2,149,605 76.0% 6

Proposal 3 Approve a manager-of-managers arrangement with wholly owned subsidiaries of Vanguard. This arrangement enables Vanguard or the fund to enter into and materially amend investment advisory arrangements with wholly owned subsidiaries of Vanguard, subject to the approval of the fund s board of trustees and any conditions imposed by the Securities and Exchange Commission (SEC), while avoiding the costs and delays associated with obtaining future shareholder approval. The ability of the fund to operate in this manner is contingent upon the SEC s approval of a pending application for an order of exemption. Broker Percentage Vanguard Fund For Abstain Against Non-Votes For Russell 1000 Growth Index Fund 8,747,011 276,833 181,768 2,263,999 76.3% Russell 1000 Index Fund 6,976,744 184,875 41,357 1,186,495 83.2% Russell 1000 Value Index Fund 8,887,867 330,991 210,846 2,149,605 76.8% 7

Russell 1000 Index Fund Fund Profile As of February 28, 2018 Share-Class Characteristics Portfolio Characteristics ETF Shares Institutional Shares Ticker Symbol VONE VRNIX Expense Ratio 1 0.12% 0.08% 30-Day SEC Yield 1.74% 1.78% DJ Fund Russell 1000 Index U.S. Total Market FA Index Number of Stocks 982 977 3,746 Median Market Cap $88.5B $88.5B $68.2B Price/Earnings Ratio 21.9x 21.9x 21.7x Price/Book Ratio 3.1x 3.1x 3.0x Return on Equity 15.8% 15.8% 15.0% Earnings Growth Rate 8.5% 8.5% 8.5% Dividend Yield 1.8% 1.8% 1.7% Foreign Holdings 0.0% 0.0% 0.0% Turnover Rate (Annualized) 9% Short-Term Reserves -0.2% Sector Diversification (% of equity exposure) DJ Russell U.S. Total Fund 1000 Index Market FA Index Consumer Discretionary 14.2% 14.2% 14.2% Consumer Staples 6.1 6.1 5.8 Energy 5.4 5.4 5.3 Financial Services 21.2 21.2 21.6 Health Care 13.1 13.1 13.2 Materials & Processing 3.6 3.6 3.9 Producer Durables 10.8 10.8 11.0 Technology 21.1 21.1 20.6 Utilities 4.5 4.5 4.4 Sector categories are based on the Russell Global Sectors ( RGS ), except for the Other category (if applicable), which includes securities that have not been provided a RGS classification as of the effective reporting period. Volatility Measures Russell 1000 Index DJ U.S. Total Market FA Index R-Squared 1.00 1.00 Beta 1.00 0.99 These measures show the degree and timing of the fund s fluctuations compared with the indexes over 36 months. Ten Largest Holdings (% of total net assets) Apple Inc. Computer Technology 3.6% Microsoft Corp. Computer Services Software & Systems 2.7 Alphabet Inc. Computer Services Software & Systems 2.6 Amazon.com Inc. Diversified Retail 2.3 Facebook Inc. Computer Services Software & Systems 1.6 JPMorgan Chase & Co. Diversified Financial Services 1.5 Berkshire Hathaway Inc. Insurance: Multi-Line 1.5 Johnson & Johnson Pharmaceuticals 1.4 Exxon Mobil Corp. Oil: Integrated 1.2 Bank of America Corp. Banks: Diversified 1.2 Top Ten 19.6% The holdings listed exclude any temporary cash investments and equity index products. Investment Focus Style Market Cap Large Medium Small Value Blend Growth 1 The expense ratios shown are from the prospectus dated December 21, 2017, and represent estimated costs for the current fiscal year. For the six months ended February 28, 2018, the annualized expense ratios were 0.12% for ETF Shares and 0.08% for Institutional Shares. 8

Russell 1000 Index Fund Performance Summary All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Fiscal-Year Total Returns (%): September 20, 2010, Through February 28, 2018 2011 2012 2013 2014 2015 2016 2017 2018 25.18 25.36 9.02 9.13 17.19 17.33 19.70 19.84 11.41 11.69 16.02 16.16 10.55 10.62 0.29 0.40 Russell 1000 Index Fund ETF Shares Net Asset Value Russell 1000 Index Note: For 2018, performance data reflect the six months ended February 28, 2018. Average Annual Total Returns: Periods Ended December 31, 2017 This table presents returns through the latest calendar quarter rather than through the end of the fiscal period. Securities and Exchange Commission rules require that we provide this information. Inception Date ETF Shares 9/20/2010 One Year Five Years Since Inception Market Price 21.53% 15.55% 14.62% Net Asset Value 21.54 15.54 14.62 Institutional Shares 10/15/2010 21.59 15.59 14.32 See Financial Highlights for dividend and capital gains information. 9

Russell 1000 Index Fund Financial Statements (unaudited) Statement of Net Assets Investments Summary As of February 28, 2018 This Statement summarizes the fund s holdings by asset type. Details are reported for each of the fund s 50 largest individual holdings and for investments that, in total for any issuer, represent more than 1% of the fund s net assets. The total value of smaller holdings is reported as a single amount within each category. The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the complete listing of the fund s holdings is available electronically on vanguard.com and on the Securities and Exchange Commission s website (sec.gov), or you can have it mailed to you without charge by calling 800-662-7447. For the first and third fiscal quarters, the fund files the lists with the SEC on Form N-Q. Shareholders can look up the fund s Forms N-Q on the SEC s website. Forms N-Q may also be reviewed and copied at the SEC s Public Reference Room (see the back cover of this report for further information). Market Percentage Value of Net Shares Assets Common Stocks Consumer Discretionary * Amazon.com Inc. 44,281 66,973 2.3% Home Depot Inc. 131,248 23,923 0.8% Comcast Corp. Class A 517,447 18,737 0.7% Walt Disney Co. 171,766 17,719 0.6% Walmart Inc. 159,929 14,395 0.5% McDonald s Corp. 89,092 14,053 0.5% * Netflix Inc. 45,648 13,301 0.5% Consumer Discretionary Other 237,642 8.3% 406,743 14.2% Consumer Staples Procter & Gamble Co. 285,306 22,402 0.8% Coca-Cola Co. 427,907 18,494 0.6% Philip Morris International Inc. 172,927 17,907 0.6% PepsiCo Inc. 159,034 17,451 0.6% Altria Group Inc. 212,641 13,386 0.5% 1 Consumer Staples Other 86,177 3.0% 175,817 6.1% Energy Exxon Mobil Corp. 472,928 35,820 1.2% Chevron Corp. 210,791 23,592 0.8% Energy Other 94,918 3.4% 154,330 5.4% Financial Services JPMorgan Chase & Co. 384,847 44,450 1.5% * Berkshire Hathaway Inc. Class B 214,218 44,386 1.5% Bank of America Corp. 1,079,557 34,654 1.2% Wells Fargo & Co. 492,821 28,786 1.0% Visa Inc. Class A 202,760 24,927 0.9% 10

Russell 1000 Index Fund Market Percentage Value of Net Shares Assets Citigroup Inc. 294,590 22,239 0.8% Mastercard Inc. Class A 104,925 18,442 0.7% Financial Services Other 389,068 13.6% 606,952 21.2% Health Care Johnson & Johnson 300,387 39,014 1.4% UnitedHealth Group Inc. 106,924 24,182 0.8% Pfizer Inc. 659,531 23,948 0.8% AbbVie Inc. 177,537 20,564 0.7% Merck & Co. Inc. 304,795 16,526 0.6% Amgen Inc. 82,046 15,078 0.5% Bristol-Myers Squibb Co. 183,454 12,145 0.4% Medtronic plc 151,008 12,064 0.4% Gilead Sciences Inc. 145,050 11,420 0.4% Health Care Other 199,418 7.0% 374,359 13.0% Materials & Processing DowDuPont Inc. 259,757 18,261 0.6% Materials & Processing Other 84,845 3.0% 103,106 3.6% 2Other 21 0.0% Producer Durables Boeing Co. 62,009 22,460 0.8% 3M Co. 64,619 15,218 0.5% General Electric Co. 967,415 13,650 0.5% Honeywell International Inc. 84,719 12,802 0.5% Union Pacific Corp. 87,728 11,427 0.4% Producer Durables Other 233,267 8.1% 308,824 10.8% Technology Apple Inc. 572,503 101,974 3.6% Microsoft Corp. 835,960 78,388 2.7% * Facebook Inc. Class A 259,929 46,351 1.6% * Alphabet Inc. Class C 34,070 37,638 1.3% * Alphabet Inc. Class A 32,801 36,210 1.3% Intel Corp. 525,650 25,909 0.9% Cisco Systems Inc. 552,893 24,759 0.9% Oracle Corp. 324,516 16,443 0.6% NVIDIA Corp. 63,259 15,309 0.5% International Business Machines Corp. 94,211 14,681 0.5% Texas Instruments Inc. 111,185 12,047 0.4% * Adobe Systems Inc. 55,232 11,551 0.4% Technology Other 181,486 6.3% 602,746 21.0% Utilities AT&T Inc. 685,662 24,890 0.9% Verizon Communications Inc. 459,075 21,916 0.8% Utilities Other 82,140 2.8% 128,946 4.5% Total Common Stocks (Cost $2,126,515) 2,861,844 99.8% 3 11

Russell 1000 Index Fund Market Percentage Value of Net Coupon Shares Assets Temporary Cash Investments Money Market Fund 4,5 Vanguard Market Liquidity Fund 1.601% 36,769 3,677 0.1% 6U.S. Government and Agency Obligations 497 0.0% Total Temporary Cash Investments (Cost $4,174) 4,174 0.1% 3 7Total Investments (Cost $2,130,689) 2,866,018 99.9% Amount Other Assets and Liabilities Other Assets Investment in Vanguard 155 Receivables for Accrued Income 5,068 Receivables for Capital Shares Issued 653 Other Assets 618 Total Other Assets 6,494 0.2% Liabilities Payables for Investment Securities Purchased (375) Collateral for Securities on Loan (2,697) Payables for Capital Shares Redeemed (133) Payables to Vanguard (645) Variation Margin Payable Futures Contracts (93) Total Liabilities (3,943) (0.1%) Net Assets 2,868,569 100.0% At February 28, 2018, net assets consisted of: Amount Paid-in Capital 2,167,515 Undistributed Net Investment Income 6,895 Accumulated Net Realized Losses (41,281) Unrealized Appreciation (Depreciation) Investment Securities 735,329 Futures Contracts 111 Net Assets 2,868,569 12

Russell 1000 Index Fund Amount ETF Shares Net Assets Applicable to 6,800,000 outstanding $.001 par value shares of beneficial interest (unlimited authorization) 845,786 Net Asset Value Per Share ETF Shares $124.38 Institutional Shares Net Assets Applicable to 8,394,982 outstanding $.001 par value shares of beneficial interest (unlimited authorization) 2,022,783 Net Asset Value Per Share Institutional Shares $240.95 See Note A in Notes to Financial Statements. * Non-income-producing security. Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets. 1 Certain of the fund s securities are valued using significant unobservable inputs. 2 Other represents securities that are not classified by the fund s benchmark index. 3 The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund s effective common stock and temporary cash investment positions represent 100.0% and -0.1%, respectively, of net assets. 4 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. 5 Includes $2,697,000 of collateral received for securities on loan. 6 Securities with a value of $423,000 have been segregated as initial margin for open futures contracts. 7 The total value of securities on loan is $2,553,000. Derivative Financial Instruments Outstanding as of Period End Futures Contracts Value and Number of Unrealized Long (Short) Notional Appreciation Expiration Contracts Amount (Depreciation) Long Futures Contracts E-mini S&P 500 Index March 2018 56 7,600 111 Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes. See accompanying Notes, which are an integral part of the Financial Statements. 13

Russell 1000 Index Fund Statement of Operations Six Months Ended February 28, 2018 Investment Income Income Dividends 25,135 Interest 1 21 Securities Lending Net 28 Total Income 25,184 Expenses The Vanguard Group Note B Investment Advisory Services 350 Management and Administrative ETF Shares 306 Management and Administrative Institutional Shares 485 Marketing and Distribution ETF Shares 24 Marketing and Distribution Institutional Shares 22 Custodian Fees 79 Shareholders Reports and Proxy ETF Shares 18 Shareholders Reports and Proxy Institutional Shares 3 Trustees Fees and Expenses 1 Total Expenses 1,288 Net Investment Income 23,896 Realized Net Gain (Loss) Investment Securities Sold 1 102,074 Futures Contracts 454 Realized Net Gain (Loss) 102,528 Change in Unrealized Appreciation (Depreciation) Investment Securities 1 160,300 Futures Contracts 25 Change in Unrealized Appreciation (Depreciation) 160,325 Net Increase (Decrease) in Net Assets Resulting from Operations 286,749 1 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $20,000, $2,000, and ($1,000), respectively. Purchases and sales are for temporary cash investment purposes. See accompanying Notes, which are an integral part of the Financial Statements. 14

Russell 1000 Index Fund Statement of Changes in Net Assets Six Months Ended Year Ended February 28, August 31, 2018 2017 Increase (Decrease) in Net Assets Operations Net Investment Income 23,896 49,543 Realized Net Gain (Loss) 102,528 72,664 Change in Unrealized Appreciation (Depreciation) 160,325 254,042 Net Increase (Decrease) in Net Assets Resulting from Operations 286,749 376,249 Distributions Net Investment Income ETF Shares (7,355) (13,358) Institutional Shares (20,433) (34,418) Realized Capital Gain ETF Shares Institutional Shares Total Distributions (27,788) (47,776) Capital Share Transactions ETF Shares 51,163 (45,968) Institutional Shares (179,569) 227,507 Net Increase (Decrease) from Capital Share Transactions (128,406) 181,539 Total Increase (Decrease) 130,555 510,012 Net Assets Beginning of Period 2,738,014 2,228,002 End of Period 1 2,868,569 2,738,014 1 Net Assets End of Period includes undistributed (overdistributed) net investment income of $6,895,000 and $10,787,000. See accompanying Notes, which are an integral part of the Financial Statements. 15

Russell 1000 Index Fund Financial Highlights ETF Shares Six Months Ended For a Share Outstanding February 28, Year Ended August 31, Throughout Each Period 2018 2017 2016 2015 2014 2013 Net Asset Value, Beginning of Period $113.60 $99.81 $91.37 $92.70 $75.40 $64.29 Investment Operations Net Investment Income.990 1 2.054 1 1.892 1.679 1.553 1.444 Net Realized and Unrealized Gain (Loss) on Investments 10.928 13.753 8.383 (1.355) 17.272 11.068 Total from Investment Operations 11.918 15.807 10.275.324 18.825 12.512 Distributions Dividends from Net Investment Income (1.138) (2.017) (1.835) (1.654) (1.525) (1.402) Distributions from Realized Capital Gains Total Distributions (1.138) (2.017) (1.835) (1.654) (1.525) (1.402) Net Asset Value, End of Period $124.38 $113.60 $99.81 $91.37 $92.70 $75.40 Total Return 10.55% 16.02% 11.41% 0.29% 25.18% 19.70% Ratios/Supplemental Data Net Assets, End of Period (Millions) $846 $724 $679 $514 $380 $219 Ratio of Total Expenses to Average Net Assets 0.12% 0.12% 0.12% 0.12% 0.12% 0.12% Ratio of Net Investment Income to Average Net Assets 1.68% 1.94% 2.05% 1.84% 1.85% 2.09% Portfolio Turnover Rate 2 9% 11% 9% 4% 7% 11% The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized. 1 Calculated based on average shares outstanding. 2 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund s capital shares, including ETF Creation Units. See accompanying Notes, which are an integral part of the Financial Statements. 16

Russell 1000 Index Fund Financial Highlights Institutional Shares Six Months Ended For a Share Outstanding February 28, Year Ended August 31, Throughout Each Period 2018 2017 2016 2015 2014 2013 Net Asset Value, Beginning of Period $220.06 $193.36 $176.99 $179.58 $146.04 $124.53 Investment Operations Net Investment Income 1.969 1 4.080 1 3.732 3.329 3.060 2.850 Net Realized and Unrealized Gain (Loss) on Investments 21.168 26.609 16.259 (2.641) 33.485 21.424 Total from Investment Operations 23.137 30.689 19.991.688 36.545 24.274 Distributions Dividends from Net Investment Income (2.247) (3.989) (3.621) (3.278) (3.005) (2.764) Distributions from Realized Capital Gains Total Distributions (2.247) (3.989) (3.621) (3.278) (3.005) (2.764) Net Asset Value, End of Period $240.95 $220.06 $193.36 $176.99 $179.58 $146.04 Total Return 10.57% 16.06% 11.47% 0.33% 25.24% 19.73% Ratios/Supplemental Data Net Assets, End of Period (Millions) $2,023 $2,014 $1,549 $1,251 $944 $677 Ratio of Total Expenses to Average Net Assets 0.08% 0.08% 0.08% 0.08% 0.08% 0.08% Ratio of Net Investment Income to Average Net Assets 1.72% 1.98% 2.09% 1.88% 1.89% 2.13% Portfolio Turnover Rate 2 9% 11% 9% 4% 7% 11% The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized. 1 Calculated based on average shares outstanding. 2 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund s capital shares, including ETF Creation Units. See accompanying Notes, which are an integral part of the Financial Statements. 17

Russell 1000 Index Fund Notes to Financial Statements Vanguard Russell 1000 Index 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: ETF Shares and Institutional Shares. ETF Shares are listed for trading on Nasdaq; they can be purchased and sold through a broker. Institutional Shares are designed for investors who meet certain administrative, service, and account-size criteria. A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements. 1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund s pricing time but after the close of the securities primary markets, are valued by methods deemed by the board of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that fund s net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. 2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectives of maintaining full exposure to the stock market, maintaining liquidity, and minimizing transaction costs. The fund may purchase futures contracts to immediately invest incoming cash in the market, or sell futures in response to cash outflows, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses). During the six months ended February 28, 2018, the fund s average investments in long and short futures contracts represented less than 1% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period. 18

Russell 1000 Index Fund 3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund s tax positions taken for all open federal income tax years (August 31, 2014 2017), and for the period ended February 28, 2018, and has concluded that no provision for federal income tax is required in the fund s financial statements. 4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. 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 on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Net Assets for the return of the collateral, during the period the securities are on loan. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities. 6. Credit Facility: The fund and certain other funds managed by The Vanguard Group ( Vanguard ) participate in a $3.1 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund s board of trustees and included in Management and Administrative expenses on the fund s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread. The fund had no borrowings outstanding at February 28, 2018, or at any time during the period then ended. 7. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. 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. 19

Russell 1000 Index Fund 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), shareholder reporting, and the proxy. 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. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month. Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2018, the fund had contributed to Vanguard capital in the amount of $155,000, representing 0.01% of the fund s net assets and 0.06% of Vanguard s capitalization. The fund s trustees and officers are also directors and employees, respectively, of Vanguard. C. Various inputs may be used to determine the value of the fund s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. Level 1 Quoted prices in active markets for identical securities. Level 2 Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 Significant unobservable inputs (including the fund s own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Statement of Net Assets. The following table summarizes the market value of the fund s investments as of February 28, 2018, based on the inputs used to value them: Level 1 Level 2 Level 3 Investments Common Stocks 2,861,831 13 Temporary Cash Investments 3,677 497 Futures Contracts Liabilities 1 (93) Total 2,865,415 497 13 1 Represents variation margin on the last day of the reporting period. 20

Russell 1000 Index Fund D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes. These differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes. During the six months ended February 28, 2018, the fund realized $102,357,000 of net capital gains resulting from in-kind redemptions in which shareholders exchanged fund shares for securities held by the fund rather than for cash. Because such gains are not taxable to the fund, and are not distributed to shareholders, they have been reclassified from accumulated net realized losses to paid-in capital. The fund s tax-basis capital gains and losses are determined only at the end of each fiscal year. For tax purposes, at August 31, 2017, the fund had available capital losses totaling $41,367,000 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 August 31, 2018; should the fund realize net capital losses for the year, the losses will be added to the loss carryforward balance above. At February 28, 2018, the cost of investment securities for tax purposes was $2,130,689,000. Net unrealized appreciation of investment securities for tax purposes was $735,329,000, consisting of unrealized gains of $815,931,000 on securities that had risen in value since their purchase and $80,602,000 in unrealized losses on securities that had fallen in value since their purchase. E. During the six months ended February 28, 2018, the fund purchased $248,004,000 of investment securities and sold $378,578,000 of investment securities, other than temporary cash investments. Purchases and sales include $82,527,000 and $253,258,000, 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 February 28, 2018, such purchases and sales were $40,125,000 and $19,905,000, respectively; these amounts are included in the purchases and sales of investment securities noted above. 21

Russell 1000 Index Fund F. Capital share transactions for each class of shares were: Six Months Ended Year Ended February 28, 2018 August 31, 2017 Amount Shares Amount Shares (000) (000) ETF Shares Issued 310,240 2,550 120,235 1,150 Issued in Lieu of Cash Distributions Redeemed (259,077) (2,125) (166,203) (1,575) Net Increase (Decrease) ETF Shares 51,163 425 (45,968) (425) Institutional Shares Issued 118,140 512 492,249 2,424 Issued in Lieu of Cash Distributions 19,247 84 31,880 157 Redeemed (316,956) (1,352) (296,622) (1,442) Net Increase (Decrease) Institutional Shares (179,569) (756) 227,507 1,139 G. Management has determined that no material events or transactions occurred subsequent to February 28, 2018, that would require recognition or disclosure in these financial statements. 22

Russell 1000 Value Index Fund Fund Profile As of February 28, 2018 Share-Class Characteristics Portfolio Characteristics ETF Shares Institutional Shares Ticker Symbol VONV VRVIX Expense Ratio 1 0.12% 0.08% 30-Day SEC Yield 2.31% 2.35% Fund Russell 1000 Value Index DJ U.S. Total Market FA Index Number of Stocks 714 712 3,746 Median Market Cap $66.0B $66.0B $68.2B Price/Earnings Ratio 17.3x 17.3x 21.7x Price/Book Ratio 2.0x 2.0x 3.0x Return on Equity 11.6% 11.6% 15.0% Earnings Growth Rate 4.7% 4.7% 8.5% Dividend Yield 2.4% 2.4% 1.7% Foreign Holdings 0.0% 0.0% 0.0% Turnover Rate (Annualized) 6% Short-Term Reserves -0.2% Sector Diversification (% of equity exposure) Russell DJ 1000 U.S. Total Fund Value Index Market FA Index Consumer Discretionary 8.4% 8.4% 14.2% Consumer Staples 7.0 7.0 5.8 Energy 10.3 10.3 5.3 Financial Services 32.3 32.3 21.6 Health Care 13.7 13.7 13.2 Materials & Processing 3.3 3.3 3.9 Producer Durables 7.9 7.9 11.0 Technology 8.7 8.7 20.6 Utilities 8.4 8.4 4.4 Sector categories are based on the Russell Global Sectors ( RGS ), except for the Other category (if applicable), which includes securities that have not been provided a RGS classification as of the effective reporting period. Volatility Measures Russell 1000 Value Index DJ U.S. Total Market FA Index R-Squared 1.00 0.93 Beta 1.00 0.97 These measures show the degree and timing of the fund s fluctuations compared with the indexes over 36 months. Ten Largest Holdings (% of total net assets) JPMorgan Chase & Co. Diversified Financial Services 3.2% Berkshire Hathaway Inc. Insurance: Multi-Line 3.2 Exxon Mobil Corp. Oil: Integrated 2.6 Bank of America Corp. Banks: Diversified 2.5 Johnson & Johnson Pharmaceuticals 2.4 Wells Fargo & Co. Banks: Diversified 2.1 Intel Corp. Semiconductors & Components 1.9 AT&T Inc. Utilities: Telecommunications 1.8 Cisco Systems Inc. Communications Technology 1.8 Pfizer Inc. Pharmaceuticals 1.7 Top Ten 23.2% The holdings listed exclude any temporary cash investments and equity index products. Investment Focus Style Market Cap Large Medium Small Value Blend Growth 1 The expense ratios shown are from the prospectus dated December 21, 2017, and represent estimated costs for the current fiscal year. For the six months ended February 28, 2018, the annualized expense ratios were 0.12% for ETF Shares and 0.08% for Institutional Shares. 23

Russell 1000 Value Index Fund Performance Summary All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Fiscal-Year Total Returns (%): September 20, 2010, Through February 28, 2018 2011 2012 2013 2014 2015 2016 2017 2018 22.90 23.10 24.27 24.43 5.28 5.47 17.17 17.30 12.65 12.92 11.45 11.58 7.20 7.26 3.59 3.48 Russell 1000 Value Index Fund ETF Shares Net Asset Value Russell 1000 Value Index Note: For 2018, performance data reflect the six months ended February 28, 2018. Average Annual Total Returns: Periods Ended December 31, 2017 This table presents returns through the latest calendar quarter rather than through the end of the fiscal period. Securities and Exchange Commission rules require that we provide this information. Inception Date ETF Shares 9/20/2010 One Year Five Years Since Inception Market Price 13.56% 13.87% 13.25% Net Asset Value 13.55 13.87 13.24 Institutional Shares 12/10/2010 13.60 13.93 12.58 See Financial Highlights for dividend and capital gains information. 24

Russell 1000 Value Index Fund Financial Statements (unaudited) Statement of Net Assets Investments Summary As of February 28, 2018 This Statement summarizes the fund s holdings by asset type. Details are reported for each of the fund s 50 largest individual holdings and for investments that, in total for any issuer, represent more than 1% of the fund s net assets. The total value of smaller holdings is reported as a single amount within each category. The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the complete listing of the fund s holdings is available electronically on vanguard.com and on the Securities and Exchange Commission s website (sec.gov), or you can have it mailed to you without charge by calling 800-662-7447. For the first and third fiscal quarters, the fund files the lists with the SEC on Form N-Q. Shareholders can look up the fund s Forms N-Q on the SEC s website. Forms N-Q may also be reviewed and copied at the SEC s Public Reference Room (see the back cover of this report for further information). Market Percentage Value of Net Shares Assets Common Stocks Consumer Discretionary Walmart Inc. 332,189 29,900 1.0% Time Warner Inc. 179,716 16,706 0.6% General Motors Co. 298,420 11,743 0.4% Walt Disney Co. 113,140 11,671 0.4% Consumer Discretionary Other 170,620 6.0% 240,640 8.4% Consumer Staples Procter & Gamble Co. 561,850 44,117 1.5% Philip Morris International Inc. 326,630 33,823 1.2% CVS Health Corp. 235,294 15,937 0.6% Mondelez International Inc. Class A 338,959 14,880 0.5% Colgate-Palmolive Co. 167,571 11,557 0.4% Consumer Staples Other 79,463 2.8% 199,777 7.0% Energy Exxon Mobil Corp. 980,783 74,285 2.6% Chevron Corp. 437,327 48,946 1.7% Schlumberger Ltd. 322,168 21,147 0.7% ConocoPhillips 277,071 15,048 0.5% EOG Resources Inc. 121,364 12,309 0.4% Occidental Petroleum Corp. 176,777 11,597 0.4% Energy Other 112,928 4.0% 296,260 10.3% Financial Services JPMorgan Chase & Co. 798,747 92,255 3.2% * Berkshire Hathaway Inc. Class B 444,737 92,150 3.2% Bank of America Corp. 2,243,021 72,001 2.5% Wells Fargo & Co. 1,023,835 59,802 2.1% 25

Russell 1000 Value Index Fund Market Percentage Value of Net Shares Assets Citigroup Inc. 611,917 46,194 1.6% Goldman Sachs Group Inc. 81,301 21,376 0.7% US Bancorp 360,479 19,596 0.7% PNC Financial Services Group Inc. 111,784 17,624 0.6% Morgan Stanley 298,340 16,713 0.6% American Express Co. 166,607 16,246 0.6% BlackRock Inc. 28,731 15,786 0.5% Chubb Ltd. 107,456 15,250 0.5% Bank of New York Mellon Corp. 229,466 13,086 0.5% CME Group Inc. 78,235 13,000 0.5% Financial Services Other 413,107 14.4% 924,186 32.2% Health Care Johnson & Johnson 528,371 68,625 2.4% Pfizer Inc. 1,368,489 49,690 1.7% Merck & Co. Inc. 598,670 32,460 1.1% Abbott Laboratories 390,838 23,579 0.8% Medtronic plc 290,924 23,242 0.8% Amgen Inc. 121,094 22,253 0.8% Anthem Inc. 59,406 13,983 0.5% Danaher Corp. 141,598 13,845 0.5% Bristol-Myers Squibb Co. 193,473 12,808 0.5% Allergan plc 77,775 11,994 0.4% Health Care Other 119,097 4.2% 391,576 13.7% Materials & Processing DowDuPont Inc. 282,157 19,836 0.7% Materials & Processing Other 74,180 2.6% 94,016 3.3% 1Other 13 0.0% Producer Durables General Electric Co. 1,661,620 23,446 0.8% United Technologies Corp. 172,621 23,259 0.8% Producer Durables Other 178,330 6.3% 225,035 7.9% Technology Intel Corp. 1,090,565 53,754 1.9% Cisco Systems Inc. 1,147,151 51,369 1.8% Oracle Corp. 620,280 31,430 1.1% QUALCOMM Inc. 341,573 22,202 0.7% Technology Other 91,203 3.2% 249,958 8.7% Utilities AT&T Inc. 1,423,524 51,674 1.8% Verizon Communications Inc. 472,557 22,560 0.8% NextEra Energy Inc. 108,174 16,459 0.6% Duke Energy Corp. 162,049 12,209 0.4% Utilities Other 137,407 4.8% 240,309 8.4% Total Common Stocks (Cost $2,484,973) 2,861,770 99.9% 2 26