Vanguard Fiduciary Trust Company. Target Retirement 2020 Trust II. Financial Statements

Vanguard Fiduciary Trust Company Target Retirement 2020 Trust II Financial Statements March 31, 2018

Vanguard Fiduciary Trust Company - Target Retirement 2020 Trust II Statement of Assets and Liabilities As of March 31, 2018 Amount ($000) Assets Investment in Target Retirement 2020 Master Trust, at Value 7,273,300 Receivables for Units Issued 6,998 Total Assets 7,280,298 Liabilities Payables for Investment in the Master Trust Purchased 4,316 Payables for Units Redeemed 2,682 Accrued Expenses 262 Total Liabilities 7,260 Net Assets 7,273,038 Units of Beneficial Ownership Outstanding 222,146,960 Net Asset Value Per Unit (Net Assets Divided by Units Outstanding) $32.74 See Note A in Notes to Financial Statements.

Vanguard Fiduciary Trust Company - Target Retirement 2020 Trust II Statement of Operations Year Ended March 31, 2018 ($000) Investment Income Net Investment Income allocated from the Master Trust 159,966 Expenses Trustees' Fee - Note B 2,921 Net Investment Income 157,045 Realized Net Gain (Loss) allocated from the Master Trust 117,634 Change in Unrealized Appreciation (Depreciation) allocated from the Master Trust 310,759 Net Increase (Decrease) in Net Assets Resulting from Operations 585,438

Vanguard Fiduciary Trust Company - Target Retirement 2020 Trust II Statement of Changes in Net Assets Year Ended March 31, 2018 2017 ($000) ($000) Increase (Decrease) in Net Assets Operations Net Investment Income 157,045 129,627 Realized Net Gain (Loss) 117,634 43,735 Change in Unrealized Appreciation (Depreciation) 310,759 352,249 Net Increase (Decrease) in Net Assets Resulting from Operations 585,438 525,611 Unit Transactions Issued 1,857,699 2,028,073 Redeemed (1,509,106) (1,488,961) Net Increase (Decrease) from Unit Transactions 348,593 539,112 Total Increase (Decrease) 934,031 1,064,723 Net Assets Beginning of Period 6,339,007 5,274,284 End of Period 7,273,038 6,339,007

Vanguard Fiduciary Trust Company - Target Retirement 2020 Trust II Financial Highlights For a Unit Outstanding Year Ended March 31, Throughout Each Period 2018 2017 2016 2015 2014 Net Asset Value, Beginning of Period $30.02 $27.42 $27.71 $25.75 $22.98 Investment Operations Net Investment Income 1.72.65.59.58.55 Net Realized and Unrealized Gain (Loss) on Investments 2.00 1.95 (.88) 1.38 2.22 Total from Investment Operations 2.72 2.60 (.29) 1.96 2.77 Net Asset Value, End of Period $32.74 $30.02 $27.42 $27.71 $25.75 Total Return 9.06% 9.48% -1.05% 7.61% 12.05% Ratios/Supplemental Data Net Assets, End of Period (Millions) $7,273 $6,339 $5,274 $6,212 $3,711 Ratio of Direct Expenses to Average Net Assets- Note B 0.04% 0.04% 0.06% 0.05% 0.05% Ratio of Total Expenses Including Acquired Trust Expenses to Average Net Assets--Note B 0.08% 0.08% 0.10% 0.11% 0.11% Ratio of Net Investment Income to Average Net Assets 2.26% 2.26% 2.29% 2.15% 2.11% 1 Calculated based on average units outstanding.

Vanguard Fiduciary Trust Company - Target Retirement 2020 Trust II Notes to Financial Statements Vanguard Fiduciary Trust Company Target Retirement 2020 Trust II (the "Trust") was established by a Declaration of Trust dated June 1, 2007, and most recently amended effective April 1, 2015, to provide a collective investment trust for employee benefit plans and other eligible entities (see "Federal Income Taxes" below). The Trust invests substantially all of its assets in Target Retirement 2020 Master Trust (the Master Trust ), which has the same investment objectives as the Trust. The accompanying financial statements of the Master Trust, including the Schedule of Investments, should be read in conjunction with the financial statements of the Trust. The Master Trust allocates daily its net investment income, realized and unrealized gains and losses among its participating trusts based on their proportionate ownership. At March 31, 2018, the Trust owned 24% of the Master Trust. A. The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements. Such policies are in accordance with the Declaration of Trust and in conformity with generally accepted accounting principles for U.S. investment companies. 1. Security Valuation: The Trust's investment in the Master Trust reflects its proportionate interest in the net assets of the Master Trust. This value is determined as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. 2. Investment Income, Realized and Unrealized Gains (Losses): The Trust receives a daily allocation of its proportionate interest of net investment income, realized gains (losses), and change in unrealized appreciation (depreciation) from the Master Trust. The Trust accrues its own expenses, as described in Note B. 3. Federal Income Taxes: The Trust is qualified for the collective investment of funds of tax-exempt pension, stock bonus, and profit-sharing trusts under Section 401(a) of the Internal Revenue Code (the "Code") and governmental plans or units under Section 818(a)(6) of the Code and is exempt from federal income taxation under Section 501(a) of the Code. Net investment income and realized net gains are not required to be distributed to unitholders and are instead retained by the Trust. Management has reviewed the tax-exempt status of the Trust and has concluded that no provision for federal income tax is required in the financial statements. B. Vanguard Fiduciary Trust Company is Trustee and administrator for the Trust. The Trustee provides corporate management and administrative services to the Trust in return for a fee calculated at an annual percentage rate of the average net assets of the Trust; the specified fee rate takes into account both expenses paid directly by the Trust and the underlying investments expenses. For the year ended March 31, 2018, the total expenses of the Trust were 0.08%, of which 0.04% represents fees paid directly to the Trustee and 0.04% represents the Master Trust s share of the expenses of the underlying funds in which it invests. C. Various inputs may be used to determine the value of the Trust'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 Trust's own assumptions used to determine the fair value of investments).

Vanguard Fiduciary Trust Company - Target Retirement 2020 Trust II At March 31, 2018, the Trust s investment in the Master Trust is considered to be valued based on a Level 2 input, as the value of the Master Trust is not quoted in an active market. The Master Trust's investments are valued based on Level 1 inputs. D. Units issued and redeemed were: Year Ended March 31, 2018 Units (000 ) 2017 Units (000 ) Issued 58,294 70,856 Redeemed (47,310) (52,052) Net Increase (Decrease) in Units Outstanding 10,984 18,804 E. Management has determined that no material events or transactions occurred through May 17, 2018, that would require recognition or disclosure in these financial statements.

Report of Independent Auditors To the Board of Directors of Vanguard Fiduciary Trust Company We have audited the accompanying financial statements of Vanguard Fiduciary Trust Company Target Retirement 2020 Trust II (the Trust ), which comprise the statement of assets and liabilities as of March 31, 2018 and the related statement of operations for the year then ended, statement of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are hereafter collectively referred to as "financial statements". Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Trust s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vanguard Fiduciary Trust Company Target Retirement 2020 Trust II as of March 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in accordance with accounting principles generally accepted in the United States of America. May 17, 2018 PricewaterhouseCoopers LLP, Two Commerce Square, Suite 1800, 2001 Market Street, Philadelphia, PA 19103-7042 T: (267) 330 3000, F: (267) 330 3300, www.pwc.com/us

Vanguard Fiduciary Trust Company Target Retirement 2020 Master Trust Financial Statements March 31, 2018

Vanguard Fiduciary Trust Company - Target Retirement 2020 Master Trust Statement of Assets and Liabilities As of March 31, 2018 Amount ($000) Assets Investments in Securities, at Value Affiliated Funds 30,532,822 Receivables for Contributions 8,785 Receivables for Accrued Income 23,993 Total Assets 30,565,600 Liabilities Payables for Investment Securities Purchased 37,996 Other Liabilities 13,225 Total Liabilities 51,221 Net Assets 30,514,379

Vanguard Fiduciary Trust Company - Target Retirement 2020 Master Trust Schedule of Investments March 31, 2018 Shares Cost ($000) Market Value ($000) Investment Companies (100.1%) U.S. Stock Fund (32.3%) Vanguard Total Stock Market Index Fund Institutional Plus Shares 79,535,381 6,833,703 9,853,638 International Stock Fund (21.6%) Vanguard Total International Stock Index Fund Institutional Plus Shares 54,502,899 5,632,262 6,604,661 U.S. Bond Funds (33.5%) 1 Vanguard Total Bond Market II Index Fund Institutional Shares 847,333,302 9,081,472 8,880,053 Vanguard Short-Term Inflation-Protected Securities Index Fund Institutional Shares 54,456,078 1,341,793 1,335,808 10,215,861 International Bond Fund (12.7%) Vanguard Total International Bond Index Fund Institutional Shares 117,749,778 3,744,051 3,858,660 Total Investment Companies 26,633,281 30,532,820 Temporary Cash Investment (0.0%) Money Market Fund (0.0%) 1 Vanguard Market Liquidity Fund, 1.775% 16 2 2 Total Investments (100.1%) 26,633,283 30,532,822 Other Assets and Liabilities--Net (-0.1%) (18,443) Net Assets (100%) 30,514,379 See Note A in Notes to Financial Statements. 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield.

Vanguard Fiduciary Trust Company - Target Retirement 2020 Master Trust Statement of Operations Year Ended March 31, 2018 ($000) Investment Income Income Income Distributions Received from Affiliated Funds 668,433 Net Investment Income - Note B 668,433 Realized Net Gain (Loss) Capital Gain Distributions Received from Affiliated Funds 1,913 Affiliated Funds Sold 487,684 Realized Net Gain (Loss) 489,597 Change in Unrealized Appreciation (Depreciation) of Affiliated Funds 1,302,999 Net Increase (Decrease) in Net Assets Resulting from Operations 2,461,029

Vanguard Fiduciary Trust Company - Target Retirement 2020 Master Trust Statement of Changes in Net Assets Year Ended March 31, 2018 2017 ($000) ($000) Increase (Decrease) in Net Assets Operations Net Investment Income 668,433 526,908 Realized Net Gain (Loss) 489,597 176,075 Change in Unrealized Appreciation (Depreciation) 1,302,999 1,402,509 Net Increase (Decrease) in Net Assets Resulting from Operations 2,461,029 2,105,492 Capital Transactions Contributions 5,720,940 7,019,189 Withdrawals (4,393,446) (2,938,782) Net Increase (Decrease) from Capital Transactions 1,327,494 4,080,407 Total Increase (Decrease) 3,788,523 6,185,899 Net Assets Beginning of Period 26,725,856 20,539,957 End of Period 30,514,379 26,725,856

Vanguard Fiduciary Trust Company - Target Retirement 2020 Master Trust Financial Highlights Year Ended March 31, 2018 2017 2016 2015 2014 Total Return 9.12% 9.53% -0.98% 7.66% 12.10% Ratios/Supplemental Data Net Assets, End of Period (Millions) $30,514 $26,726 $20,540 $19,612 $12,165 Ratio of Expenses to Average Net Assets--Note B 0.00% 0.00% 0.00% 0.00% 0.00% Ratio of Acquired Fund Expenses to Average Net Assets--Note B 0.04% 0.04% 0.04% 0.06% 0.06% Ratio of Net Investment Income to Average Net Assets 2.31% 2.30% 2.19% 2.19% 2.26%

Vanguard Fiduciary Trust Company - Target Retirement 2020 Master Trust Notes to Financial Statements Vanguard Fiduciary Trust Company Target Retirement 2020 Master Trust (the "Trust") was established by a Declaration of Trust dated May 10, 2007, and most recently amended effective April 1, 2015, to provide a collective investment trust for eligible tax-exempt entities (see "Federal Income Taxes" below). The Trust follows a balanced investment strategy by investing in selected Vanguard funds to achieve its targeted allocation of assets to U.S. and international stocks, and U.S. and international bonds. Financial statements and other information about each underlying fund are available on vanguard.com or upon request. A. The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements. Such policies are in accordance with the Declaration of Trust and in conformity with generally accepted accounting principles for U.S. investment companies. 1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. 2. Federal Income Taxes: The Trust is qualified for the collective investment of funds of tax-exempt pension, stock bonus, and profit-sharing trusts under Section 401(a) of the Internal Revenue Code (the "Code") and governmental plans or units under Section 818(a)(6) of the Code and is exempt from federal income taxation under Section 501(a) of the Code. Net investment income and realized net gains are not required to be distributed to unitholders and are instead retained by the Trust. Management has reviewed the tax-exempt status of the Trust and has concluded that no provision for federal income tax is required in the financial statements. 3. Other: Income and capital gain distributions received are recorded on the ex-dividend 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 based on the average cost of the securities sold. The Trust allocates daily its net investment income, realized and unrealized gains and losses among its participating trusts based on their proportionate ownership. B. Vanguard Fiduciary Trust Company is Trustee and administrator for the Trust. The Trustee furnishes without charge corporate management and administrative services to the Trust, and bears any other expenses of the Trust. The Trust s share of the expenses of the funds in which it invests reduces the income received from them and is reported in the Financial Highlights as the Ratio of Acquired Fund Expenses to Average Net Assets. C. Various inputs may be used to determine the value of the Trust'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 Trust's own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments. At March 31, 2018, 100% of the market value of the Trust's investments was determined based on Level 1 inputs.

Vanguard Fiduciary Trust Company - Target Retirement 2020 Master Trust D. During the year ended March 31, 2018, the Trust purchased $4,763,704,000 of investment securities and sold $2,728,376,000 of investment securities, other than temporary cash investments. Detailed information on security transactions can be obtained from the Trustee on request. E. Management has determined that no material events or transactions occurred through May 17, 2018, that would require recognition or disclosure in these financial statements.

Report of Independent Auditors To the Board of Directors of Vanguard Fiduciary Trust Company We have audited the accompanying financial statements of Vanguard Fiduciary Trust Company Target Retirement 2020 Master Trust (the Trust ), which comprise the statement of assets and liabilities, including the schedule of investments, as of March 31, 2018 and the related statement of operations for the year then ended, statement of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are hereafter collectively referred to as "financial statements". Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Trust s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Vanguard Fiduciary Trust Company Target Retirement 2020 Master Trust as of March 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in accordance with accounting principles generally accepted in the United States of America. May 17, 2018 PricewaterhouseCoopers LLP, Two Commerce Square, Suite 1800, 2001 Market Street, Philadelphia, PA 19103-7042 T: (267) 330 3000, F: (267) 330 3300, www.pwc.com/us