Vanguard High Dividend Yield Index Fund

Vanguard High Dividend Yield Index Fund

Semiannual Report | April 30, 2018

Contents

Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promisesor advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of thisreport. 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 anincoming ship, a lighthouse offers a beacon and safe path to shore. You can similarly depend on Vanguard to putyou 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.

Vanguard’s Principles for Investing Success

We want to give you the best chance of investment success. Theseprinciples, grounded in Vanguard’s research and experience, can put you onthe 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.

Your Fund’s Performance at a Glance. . . . . . . . . . . . . . . . . . 1

CEO’s Perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Results of Proxy Voting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Fund Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Performance Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

About Your Fund’s Expenses. . . . . . . . . . . . . . . . . . . . . . . . 25

Trustees Approve Advisory Arrangement. . . . . . . . . . . . . . 27

Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Your Fund’s Performance at a Glance

1

Total Returns: Six Months Ended April 30, 2018

TotalReturns

Vanguard High Dividend Yield Index Fund

Investor Shares 1.60%

ETF Shares

Market Price 1.66

Net Asset Value 1.63

FTSE High Dividend Yield Index 1.70

Equity Income Funds Average 2.07

Equity Income Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company.

The Vanguard ETF® Shares shown are traded on the NYSE Arca exchange and are available only through brokers. The table provides ETFreturns based on both the NYSE Arca 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.

• For the six months ended April 30, 2018, Vanguard High Dividend Yield Index Fund

returned 1.60% for Investor Shares. That performance was in line with the 1.70% return

of its expense-free benchmark. The average return of its peer group was 2.07%.

• Stocks continued to climb through late January amid robust global economic

momentum, then slumped because of concerns about inflation, geopolitical tensions,

and trade protectionism.

• Because U.S. companies that are committed to paying larger-than-average dividends

fell harder than the broad U.S. stock market, they underperformed for the six months.

• The fund posted positive results in five of ten industry sectors. Technology stood

out, with a return of about 13%. Consumer services and oil and gas also performed

well. Consumer goods, utilities, and basic materials lagged.

2

Expense RatiosYour Fund Compared With Its Peer Group

Investor

Shares

ETF

Shares

Peer Group

Average

High Dividend Yield Index Fund 0.15% 0.08% 1.15%

The fund expense ratios shown are from the prospectus dated February 22, 2018, and represent estimated costs for the current fiscal year.For the six months ended April 30, 2018, the fund’s annualized expense ratios were 0.15% for Investor Shares and 0.08% for ETF Shares.The peer-group expense ratio is derived from data provided by Lipper, a Thomson Reuters Company, and captures information throughyear-end 2017.

Peer group: Equity Income Funds.

Dear Shareholder,

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.

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 also 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, performance-

chasing, and poor advice were relentlessly

eroding investors’ dreams.

We knew Vanguard could be different

and, as a result, could make a real

difference. We have lowered the costs

of investing for our shareholders

significantly. And we’re proud of the

performance of our funds.

Vanguard is built for Vanguard

investors—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’ll keep this priority

CEO’s Perspective

Tim Buckley

President and Chief Executive Officer

3

front and center. We’re proud of what

we’ve achieved, but we’re even more

excited about what’s to come.

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

May 16, 2018

Market Barometer

Total Returns

Periods Ended April 30, 2018

Six One Five Years

Months Year (Annualized)

Stocks

Russell 1000 Index (Large-caps) 3.83% 13.17% 12.84%

Russell 2000 Index (Small-caps) 3.27 11.54 11.74

Russell 3000 Index (Broad U.S. market) 3.79 13.05 12.75

FTSE All-World ex US Index (International) 3.72 15.84 5.85

Bonds

Bloomberg Barclays U.S. Aggregate Bond Index

(Broad taxable market) -1.87% -0.32% 1.47%

Bloomberg Barclays Municipal Bond Index

(Broad tax-exempt market) -0.97 1.56 2.44

Citigroup Three-Month U.S. Treasury Bill Index 0.67 1.16 0.32

CPI

Consumer Price Index 1.57% 2.46% 1.50%

4

Results of Proxy Voting

At a 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 860,548,560 28,473,629 96.8%

Emerson U. Fullwood 859,625,511 29,396,677 96.7%

Amy Gutmann 859,439,842 29,582,347 96.7%

JoAnn Heffernan Heisen 860,336,031 28,686,158 96.8%

F. Joseph Loughrey 860,411,988 28,610,200 96.8%

Mark Loughridge 860,924,717 28,097,471 96.8%

Scott C. Malpass 859,842,339 29,179,849 96.7%

F. William McNabb III 859,460,373 29,561,815 96.7%

Deanna Mulligan 860,984,342 28,037,846 96.8%

André F. Perold 850,692,197 38,329,992 95.7%

Sarah Bloom Raskin 860,331,311 28,690,878 96.8%

Peter F. Volanakis 860,652,393 28,369,796 96.8%

* 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

High Dividend Yield

Index Fund 235,114,216 11,363,723 13,448,970 73,079,165 70.6%

5

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

High Dividend Yield

Index Fund 236,984,039 10,777,443 12,165,428 73,079,165 71.2%

6

High Dividend Yield Index Fund

Fund ProfileAs of April 30, 2018

1 The expense ratios shown are from the prospectus dated February 22, 2018, and represent estimated costs for the current fiscal year.For the six months ended April 30, 2018, the annualized expense ratios were 0.15% for Investor Shares and 0.08% for ETF Shares.

7

Volatility Measures

FTSE High

Dividend

Yield

Index

DJ

U.S. Total

Market

FA Index

R-Squared 1.00 0.90

Beta 1.00 0.88

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)

Microsoft Corp. Software 7.2%

JPMorgan Chase & Co. Banks 3.8

Johnson & Johnson Pharmaceuticals 3.5

Exxon Mobil Corp. Integrated Oil & Gas 3.4

Intel Corp. Semiconductors 2.5

Chevron Corp. Intergrated Oil & Gas 2.4

Wells Fargo & Co. Banks 2.4

Cisco Systems Inc. Telecommunications

Equipment 2.2

Pfizer Inc. Pharmaceuticals 2.2

Verizon Communications

Inc.

Fixed Line

Telecommunications 2.1

Top Ten 31.7%

The holdings listed exclude any temporary cash investments andequity index products.

Portfolio Characteristics

Fund

FTSE High

Dividend

Yield

Index

DJ

U.S. Total

Market

FA Index

Number of Stocks 380 378 3,752

Median Market

Cap $127.5B $127.5B $66.1B

Price/Earnings

Ratio 18.4x 18.4x 20.5x

Price/Book Ratio 2.7x 2.7x 2.9x

Return on Equity 16.2% 16.2% 15.0%

Earnings Growth

Rate 1.7% 1.7% 8.4%

Dividend Yield 3.1% 3.1% 1.8%

Foreign Holdings 0.0% 0.0% 0.0%

Turnover Rate

(Annualized) 2% — —

Short-Term

Reserves -0.1% — —

Market Cap

Value

Large

Medium

Small

Blend Growth Style

Investment Focus

Share-Class Characteristics

InvestorShares

ETFShares

Ticker Symbol VHDYX VYM

Expense Ratio1 0.15% 0.08%

30-Day SEC Yield 3.02% 3.09%


Sector Diversification (% of equity exposure)

Fund

FTSE HighDividend

YieldIndex

DJU.S. Total

MarketFA Index

Basic Materials 3.8% 3.8% 2.5%

Consumer Goods 11.7 11.7 8.2

Consumer Services 6.1 6.1 13.4

Financials 14.1 14.1 20.4

Health Care 12.9 12.9 12.5

Industrials 12.5 12.5 12.9

Oil & Gas 10.1 10.1 6.0

Technology 16.9 16.9 19.5

Telecommunications 4.4 4.4 1.7

Utilities 7.5 7.5 2.9

Sector categories are based on the Industry ClassificationBenchmark (“ICB”), except for the “Other” category (if applicable),which includes securities that have not been provided an ICBclassification as of the effective reporting period.

8

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 thanthe performance data cited. For performance data current to the most recent month-end, visitour 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.


Performance Summary

See Financial Highlights for dividend and capital gains information.

9

Fiscal-Year Total Returns (%): October 31, 2007, Through April 30, 2018

–32.17 –31.99

2008

3.27 3.39

2009

15.79 16.15

2010

11.70 12.03

2011

17.69 17.91

2012

24.35 24.49

2013

16.48 16.66

2014

2.78 2.91

2015

8.11 8.25

2016

19.37 19.54

2017

1.60 1.70

2018

High Dividend Yield Index Fund Investor Shares

FTSE High Dividend Yield Index

Note: For 2018, performance data reflect the six months ended April 30, 2018.

Average Annual Total Returns: Periods Ended March 31, 2018This 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.

InceptionDate

OneYear

FiveYears

TenYears

Investor Shares 11/16/2006 9.40% 11.79% 9.01%

ETF Shares 11/10/2006

Market Price 9.50 11.87 9.13

Net Asset Value 9.46 11.86 9.12

Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

Common Stocks (99.6%)1

Basic Materials (3.8%)

DowDuPont Inc. 6,781,223 428,844

Praxair Inc. 829,217 126,472

Air Products &

Chemicals Inc. 620,783 100,747

LyondellBasell Industries

NV Class A 942,240 99,623

International Paper Co. 1,194,904 61,609

Nucor Corp. 926,724 57,105

Mosaic Co. 1,020,802 27,511

Avery Dennison Corp. 256,156 26,848

CF Industries Holdings Inc. 675,692 26,217

RPM International Inc. 380,927 18,399

Reliance Steel &

Aluminum Co. 205,924 18,105

Huntsman Corp. 580,407 17,279

Olin Corp. 479,673 14,481

Scotts Miracle-Gro Co. 121,794 10,180

Domtar Corp. 180,921 7,942

Commercial Metals Co. 331,602 6,967

Compass Minerals

International Inc. 97,025 6,530

A Schulman Inc. 81,938 3,515

Rayonier Advanced

Materials Inc. 143,111 3,063* Ferroglobe plc 225,247 2,545

Innophos Holdings Inc. 54,433 2,252*,2 Ferroglobe R&W Trust 166,085 —

1,066,234

Consumer Goods (11.7%)

Procter & Gamble Co. 7,335,480 530,649

Coca-Cola Co. 11,167,659 482,555

PepsiCo Inc. 4,151,771 419,080

Philip Morris

International Inc. 4,510,570 369,867

Altria Group Inc. 5,548,122 311,305

General Motors Co. 3,807,489 139,887

Ford Motor Co. 11,313,127 127,160

Kimberly-Clark Corp. 1,016,091 105,206

Kraft Heinz Co. 1,745,667 98,421

VF Corp. 944,681 76,396

Archer-Daniels-Midland

Co. 1,600,740 72,642

General Mills Inc. 1,650,227 72,181

Tapestry Inc. 826,106 44,420

Clorox Co. 374,390 43,879

Kellogg Co. 708,100 41,707

Conagra Brands Inc. 1,107,080 41,039

Genuine Parts Co. 417,417 36,866

Bunge Ltd. 406,669 29,374

Hasbro Inc. 329,176 28,997

Coty Inc. Class A 1,360,450 23,604

Pinnacle Foods Inc. 344,458 20,805

Coca-Cola European

Partners plc 529,446 20,754

Harley-Davidson Inc. 487,948 20,069

Hanesbrands Inc. 1,040,534 19,219

Polaris Industries Inc. 170,580 17,880

Ralph Lauren Corp.

Class A 160,430 17,623

Leggett & Platt Inc. 384,845 15,606^ Mattel Inc. 993,994 14,711

Flowers Foods Inc. 510,879 11,551

Nu Skin Enterprises Inc.

Class A 150,090 10,679

Tupperware Brands Corp. 145,339 6,476

Vector Group Ltd. 280,882 5,477

B&G Foods Inc. 189,310 4,307

HNI Corp. 123,992 4,140

MDC Holdings Inc. 133,273 3,866

Cosan Ltd. 374,716 3,777

Schweitzer-Mauduit


Universal Corp. 71,465 3,362

Steelcase Inc. Class A 242,810 3,217

Knoll Inc. 143,121 2,729

Financial Statements (unaudited)

Statement of Net AssetsAs of April 30, 2018

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 lists appear in the fund’s semiannual

and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with

the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms

N-Q on the SEC’s website at sec.gov. 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).


10


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

Briggs & Stratton Corp. 119,119 2,148

Ethan Allen Interiors Inc. 69,669 1,536^ National Presto Industries

Inc. 13,953 1,336

3,309,926

Consumer Services (6.0%)

McDonald’s Corp. 2,319,331 388,349

Walmart Inc. 4,172,673 369,115

Target Corp. 1,580,105 114,716

Sysco Corp. 1,396,073 87,310

Las Vegas Sands Corp. 1,047,250 76,795

Carnival Corp. 1,181,423 74,501

Best Buy Co. Inc. 727,566 55,681

Omnicom Group Inc. 671,013 49,427

Wynn Resorts Ltd. 231,693 43,139

Darden Restaurants Inc. 362,403 33,653

Wyndham Worldwide

Corp. 287,547 32,841

Nielsen Holdings plc 1,035,723 32,573

Kohl’s Corp. 487,300 30,271

Macy’s Inc. 884,167 27,471

Interpublic Group of

Cos. Inc. 1,122,929 26,490

L Brands Inc. 698,752 24,393

KAR Auction Services Inc. 393,311 20,448

Gap Inc. 675,133 19,741

Nordstrom Inc. 338,221 17,100

H&R Block Inc. 599,017 16,563

Six Flags Entertainment

Corp. 192,529 12,175

Cinemark Holdings Inc. 308,231 12,073

Williams-Sonoma Inc. 242,485 11,591

Extended Stay America

Inc. 558,252 10,931

ILG Inc. 305,380 10,423

American Eagle Outfitters

Inc. 472,977 9,781

Cracker Barrel Old Country

Store Inc. 55,567 9,146

International Game

Technology plc 312,062 8,822

Tribune Media Co.

Class A 230,333 8,704

John Wiley & Sons Inc.

Class A 128,198 8,455

Hillenbrand Inc. 181,017 8,390

TEGNA Inc. 619,046 6,543

Meredith Corp. 114,893 5,951

Brinker International Inc. 133,908 5,837

Abercrombie & Fitch Co. 199,220 5,104

Tailored Brands Inc. 145,851 4,602

DSW Inc. Class A 188,075 4,194

Guess? Inc. 177,568 4,136

Dine Brands Global Inc. 49,567 3,933

GameStop Corp. Class A 286,993 3,917

Chico’s FAS Inc. 364,508 3,620

Gannett Co. Inc. 329,402 3,185

Copa Holdings SA

Class A 22,515 2,638

New Media Investment

Group Inc. 146,138 2,423

Buckle Inc. 81,151 1,870^ Rent-A-Center Inc. 135,399 1,369

Weis Markets Inc. 27,057 1,245

National CineMedia Inc. 174,964 1,001

Barnes & Noble Inc. 179,632 997

Speedway Motorsports Inc. 38,201 674

1,714,307

Financials (14.0%)

JPMorgan Chase & Co. 10,039,588 1,092,106

Wells Fargo & Co. 12,864,536 668,441

BlackRock Inc. 361,120 188,324

Chubb Ltd. 1,351,280 183,328

CME Group Inc. 984,137 155,179

Prudential Financial Inc. 1,231,129 130,894

MetLife Inc. 2,627,207 125,239

BB&T Corp. 2,288,398 120,827

Travelers Cos. Inc. 787,634 103,653

Aflac Inc. 2,213,938 100,889

T. Rowe Price Group Inc. 683,092 77,750

Fifth Third Bancorp 2,014,722 66,828

KeyCorp 3,107,380 61,899

Regions Financial Corp. 3,288,722 61,499

Ameriprise Financial Inc. 428,630 60,098

Huntington Bancshares

Inc. 3,088,616 46,051

Principal Financial Group

Inc. 772,832 45,767

Arthur J Gallagher & Co. 521,319 36,487

Invesco Ltd. 1,167,967 33,836

Cincinnati Financial Corp. 445,826 31,359

FNF Group 759,270 27,964

Western Union Co. 1,331,499 26,297

PacWest Bancorp 367,563 18,834

Cullen/Frost Bankers Inc. 163,991 18,769

Lazard Ltd. Class A 340,821 18,548

People’s United Financial

Inc. 996,106 18,219

Eaton Vance Corp. 329,121 17,901

Janus Henderson Group

plc 560,514 17,707

New York Community

Bancorp Inc. 1,379,583 16,389

First American Financial

Corp. 313,192 16,007

LPL Financial Holdings Inc. 255,922 15,501

Validus Holdings Ltd. 223,456 15,144

Umpqua Holdings Corp. 641,289 15,109

11


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

Old Republic International

Corp. 705,009 14,382

Axis Capital Holdings Ltd. 237,290 13,929

FNB Corp. 938,504 12,201

BankUnited Inc. 300,614 11,907

Hancock Holding Co. 242,012 11,822

Chemical Financial Corp. 202,802 11,132

Bank of Hawaii Corp. 123,068 10,364

Navient Corp. 756,013 10,025

United Bankshares Inc. 288,281 9,787

Valley National Bancorp 742,910 9,324

BGC Partners Inc. Class A 680,896 9,097

First Financial Bancorp 275,984 8,542

Glacier Bancorp Inc. 227,043 8,407

Columbia Banking System

Inc. 209,081 8,407

Fulton Financial Corp. 490,783 8,294

Community Bank System

Inc. 140,554 7,906

Kemper Corp. 114,096 7,702

BOK Financial Corp. 72,436 7,293

Federated Investors Inc.

Class B 274,426 7,264

ProAssurance Corp. 151,749 7,178

RLI Corp. 111,342 7,046

Old National Bancorp 386,461 6,647

Kennedy-Wilson Holdings

Inc. 349,233 6,618

CVB Financial Corp. 295,882 6,554

Hope Bancorp Inc. 376,615 6,512

Trustmark Corp. 193,695 6,065

WesBanco Inc. 121,237 5,310

Horace Mann Educators

Corp. 117,514 5,253

Waddell & Reed Financial

Inc. Class A 230,897 4,673

Provident Financial

Services Inc. 178,263 4,656

Northwest Bancshares Inc. 272,369 4,521

Capitol Federal Financial

Inc. 362,292 4,518

NBT Bancorp Inc. 123,242 4,503

Artisan Partners Asset

Management Inc. Class A 134,101 4,311

S&T Bancorp Inc. 99,969 4,267

First Hawaiian Inc. 153,115 4,218

First Commonwealth

Financial Corp. 274,205 4,151

Westamerica

Bancorporation 73,146 4,082

CNA Financial Corp. 77,515 3,911

Boston Private Financial

Holdings Inc. 237,030 3,804

Mercury General Corp. 80,415 3,677

HFF Inc. Class A 104,225 3,662

Sandy Spring Bancorp Inc. 91,925 3,643

Brookline Bancorp Inc. 218,683 3,630

WisdomTree Investments

Inc. 335,743 3,549

NRG Yield Inc. 192,275 3,423

Safety Insurance Group Inc. 41,278 3,302

AmTrust Financial Services

Inc. 255,226 3,290

City Holding Co. 42,334 3,030

American National

Insurance Co. 21,410 2,584

Cohen & Steers Inc. 60,998 2,446

TFS Financial Corp. 156,441 2,333

TrustCo Bank Corp. NY 269,468 2,304

FBL Financial Group Inc.

Class A 28,923 2,249

Community Trust Bancorp

Inc. 45,318 2,175

Flushing Financial Corp. 80,159 2,077

Oritani Financial Corp. 115,778 1,771

Dime Community

Bancshares Inc. 88,945 1,757

NRG Yield Inc. Class A 96,621 1,702

Maiden Holdings Ltd. 219,005 1,675

Greenhill & Co. Inc. 69,725 1,415

First Financial Corp. 28,258 1,208

Republic Bancorp Inc.

Class A 27,797 1,172

Fairfax Financial Holdings

Ltd. 46 26

3,987,526

Health Care (12.9%)

Johnson & Johnson 7,838,220 991,457

Pfizer Inc. 17,192,516 629,418

Merck & Co. Inc. 7,957,373 468,451

AbbVie Inc. 4,628,419 446,874

Amgen Inc. 2,094,451 365,440

Gilead Sciences Inc. 3,779,248 272,975

Bristol-Myers Squibb

Co. 4,786,590 249,525

Eli Lilly & Co. 2,837,799 230,060

Owens & Minor Inc. 174,656 2,838* Kindred Healthcare Inc. 255,653 2,275

Meridian Bioscience Inc. 120,095 1,753

3,661,066

Industrials (12.4%)

Boeing Co. 1,618,297 539,799

General Electric Co. 25,262,251 355,440

3M Co. 1,685,153 327,577

Caterpillar Inc. 1,649,975 238,190

Lockheed Martin Corp. 718,140 230,408

United Parcel Service

Inc. Class B 2,004,449 227,505

12


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

Raytheon Co. 845,674 173,312

Automatic Data

Processing Inc. 1,300,120 153,518

Deere & Co. 938,467 127,003

Emerson Electric Co. 1,837,737 122,044

Norfolk Southern Corp. 823,787 118,189

Waste Management Inc. 1,260,762 102,487

Eaton Corp. plc 1,277,779 95,872

Johnson Controls

International plc 2,681,888 90,836

Cummins Inc. 454,715 72,691

PACCAR Inc. 994,990 63,351

Paychex Inc. 933,031 56,514

TransDigm Group Inc. 140,231 44,954

WestRock Co. 728,232 43,082

Republic Services Inc.

Class A 653,268 42,253

Fastenal Co. 838,967 41,940

CH Robinson Worldwide

Inc. 401,977 36,994

Packaging Corp. of

America 271,721 31,435

Xerox Corp. 665,392 20,927

MDU Resources Group

Inc. 562,839 15,855

Watsco Inc. 87,290 14,614

Sonoco Products Co. 283,245 14,547

National Instruments Corp. 308,120 12,599

Ryder System Inc. 151,889 10,242

Macquarie Infrastructure

Corp. 231,699 8,781

Timken Co. 201,924 8,632

Kennametal Inc. 236,682 8,627

GATX Corp. 109,132 7,120

Mobile Mini Inc. 125,930 5,289

Covanta Holding Corp. 345,655 5,150

Brady Corp. Class A 135,074 4,917

Otter Tail Corp. 111,889 4,906

ManTech International

Corp. Class A 76,029 4,493

Greif Inc. Class A 73,463 4,299

General Cable Corp. 144,517 4,285

Triton International Ltd. 136,507 4,233

McGrath RentCorp 68,234 4,021

Greenbrier Cos. Inc. 80,032 3,509

H&E Equipment Services

Inc. 92,125 2,980

Aircastle Ltd. 143,593 2,814

Sturm Ruger & Co. Inc. 48,656 2,688

Ship Finance International

Ltd. 181,172 2,582

Schnitzer Steel Industries

Inc. 78,829 2,322

Scorpio Tankers Inc. 775,106 2,062

GasLog Ltd. 116,258 1,959

AVX Corp. 131,547 1,942

RR Donnelley & Sons Co. 201,285 1,701

Teekay Corp. 180,879 1,595

Myers Industries Inc. 65,709 1,531

Seaspan Corp. Class A 164,968 1,269^ Frontline Ltd. 222,074 962

American Railcar

Industries Inc. 23,704 900

3,529,747

Oil & Gas (10.1%)

Exxon Mobil Corp. 12,323,468 958,150

Chevron Corp. 5,493,911 687,343

ConocoPhillips 3,423,258 224,223

Occidental Petroleum

Corp. 2,218,592 171,408

Valero Energy Corp. 1,269,825 140,862

Phillips 66 1,231,835 137,116

Marathon Petroleum

Corp. 1,407,709 105,452

Kinder Morgan Inc. 5,521,901 87,356

ONEOK Inc. 1,120,460 67,474

Andeavor 452,732 62,622

Williams Cos. Inc. 2,402,810 61,824

HollyFrontier Corp. 512,960 31,132

Targa Resources Corp. 614,646 28,870

Helmerich & Payne Inc. 307,105 21,359

OGE Energy Corp. 579,446 19,046

Murphy Oil Corp. 471,953 14,211

PBF Energy Inc. Class A 319,760 12,256

Delek US Holdings Inc. 230,276 10,908

Oceaneering


SemGroup Corp. Class A 191,051 4,805

Archrock Inc. 384,793 4,156

Pattern Energy Group

Inc. Class A 226,713 4,122

CVR Energy Inc. 44,331 1,529^ Frank’s International NV 142,816 998

2,863,258

Technology (16.9%)

Microsoft Corp. 21,801,241 2,038,852

Intel Corp. 13,700,216 707,205

Cisco Systems Inc. 14,405,466 638,018

International Business

Machines Corp. 2,460,416 356,662

Texas Instruments Inc. 2,845,876 288,657

QUALCOMM Inc. 4,295,051 219,090

HP Inc. 4,781,314 102,750

Analog Devices Inc. 1,078,417 94,200

Western Digital Corp. 859,943 67,755

Seagate Technology plc 821,742 47,571

Xilinx Inc. 739,253 47,490

KLA-Tencor Corp. 454,974 46,289

13


Market

Value•

Shares ($000)

Market

Value•

Shares ($000)

Maxim Integrated

Products Inc. 815,406 44,440

CA Inc. 914,039 31,808

Garmin Ltd. 349,530 20,507

Cypress Semiconductor

Corp. 964,040 14,056

Cogent Communications

Holdings Inc. 121,261 5,717

Pitney Bowes Inc. 539,045 5,509

TiVo Corp. 345,373 4,887

NIC Inc. 184,641 2,742

4,784,205

Telecommunications (4.3%)

Verizon Communications

Inc. 11,977,581 591,094

AT&T Inc. 17,881,019 584,709

CenturyLink Inc. 2,789,854 51,836

Consolidated

Communications

Holdings Inc. 188,578 2,131^ Frontier Communications

Corp. 226,197 1,877

1,231,647

Utilities (7.5%)

NextEra Energy Inc. 1,359,364 222,813

Duke Energy Corp. 2,037,299 163,310

Southern Co. 2,894,226 133,482

Dominion Energy Inc. 1,863,821 124,056

Exelon Corp. 2,787,957 110,626

American Electric Power

Co. Inc. 1,432,156 100,222

Sempra Energy 729,183 81,523

Public Service Enterprise

Group Inc. 1,468,363 76,575

Consolidated Edison Inc. 903,126 72,368

Xcel Energy Inc. 1,478,090 69,234

PG&E Corp. 1,484,366 68,429

Edison International 921,414 60,371

WEC Energy Group Inc. 918,267 59,026

PPL Corp. 1,973,898 57,440

Eversource Energy 919,842 55,421

DTE Energy Co. 520,117 54,820

FirstEnergy Corp. 1,288,259 44,316

Entergy Corp. 521,571 42,555

Ameren Corp. 703,752 41,254

CMS Energy Corp. 810,118 38,230

CenterPoint Energy Inc. 1,250,758 31,682

Alliant Energy Corp. 673,937 28,946

Atmos Energy Corp. 316,805 27,527

Pinnacle West Capital

Corp. 321,791 25,904

UGI Corp. 504,177 24,397

NiSource Inc. 976,325 23,813

AES Corp. 1,914,931 23,439

Westar Energy Inc.

Class A 411,052 22,271

Great Plains Energy Inc. 623,836 20,418

Aqua America Inc. 517,765 18,199

Vectren Corp. 240,526 16,902

SCANA Corp. 381,209 14,017

IDACORP Inc. 145,226 13,506

WGL Holdings Inc. 148,078 12,601

ALLETE Inc. 146,733 11,212

National Fuel Gas Co. 216,865 11,136

Portland General Electric

Co. 256,116 10,880

Hawaiian Electric

Industries Inc. 312,172 10,829

ONE Gas Inc. 150,976 10,526

New Jersey Resources

Corp. 254,412 10,520

Southwest Gas Holdings

Inc. 136,287 9,948

Spire Inc. 136,418 9,843

Avista Corp. 185,540 9,622

PNM Resources Inc. 229,054 9,082

Black Hills Corp. 154,221 8,741

Avangrid Inc. 164,092 8,649

NorthWestern Corp. 141,996 7,801

South Jersey Industries

Inc. 231,260 7,146

El Paso Electric Co. 116,241 5,934

Northwest Natural Gas Co. 83,593 5,124

Atlantica Yield plc 50,284 1,010

2,127,696

Total Common Stocks

(Cost $23,435,383) 28,275,612

Temporary Cash Investments (0.3%)1

Money Market Fund (0.3%)3,4 Vanguard Market

Liquidity Fund,

1.886% 788,210 78,821

Face

Amount

($000)

U.S. Government and Agency Obligations (0.0%) 5 United States Treasury Bill,

1.370%–1.462%, 5/17/18 8,000 7,994

Total Temporary Cash Investments

(Cost $86,810) 86,815

Total Investments (99.9%)

(Cost $23,522,193) 28,362,427

14


Amount

($000)

Amount

($000)

Other Assets and Liabilities (0.1%)

Other Assets

Investment in Vanguard 1,529

Receivables for Accrued Income 39,489

Receivables for Capital Shares Issued 5,258

Other Assets 38

Total Other Assets 46,314

Liabilities

Payables for Investment Securities

Purchased (2,057)

Collateral for Securities on Loan (5,474)

Payables for Capital Shares Redeemed (4,604)

Payables to Vanguard (7,505)

Variation Margin Payable—Futures Contracts (1,049)

Total Liabilities (20,689)

Net Assets (100%) 28,388,052

At April 30, 2018, net assets consisted of:

Amount

($000)

Paid-in Capital 23,813,789

Undistributed Net Investment Income 46,607

Accumulated Net Realized Losses (308,382)

Unrealized Appreciation (Depreciation)

Investment Securities 4,840,234

Futures Contracts (4,196)

Net Assets 28,388,052

Investor Shares—Net Assets

Applicable to 240,978,540 outstanding

$.001 par value shares of beneficial

interest (unlimited authorization) 7,882,989

Net Asset Value Per Share—

Investor Shares $32.71

ETF Shares—Net Assets

Applicable to 248,337,117 outstanding

$.001 par value shares of beneficial

interest (unlimited authorization) 20,505,063

Net Asset Value Per Share—

ETF Shares $82.57

• See Note A in Notes to Financial Statements.

* Non-income-producing security.

^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $5,034,000.

1 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.

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 Includes $5,474,000 of collateral received for securities on loan.

5 Securities with a value of $5,278,000 have been segregated as initial margin for open futures contracts.

15


Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

($000)

Value and

Number of Unrealized

Long (Short) Notional Appreciation

Expiration Contracts Amount (Depreciation)

Long Futures Contracts

E-mini S&P 500 Index June 2018 860 113,821 (4,196)

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.

16

Six Months Ended

April 30, 2018

($000)

Investment Income

Income

Dividends 435,161

Interest1 574

Securities Lending—Net 468

Total Income 436,203

Expenses

The Vanguard Group—Note B

Investment Advisory Services 1,572

Management and Administrative—Investor Shares 4,632

Management and Administrative—ETF Shares 6,079

Marketing and Distribution—Investor Shares 720

Marketing and Distribution—ETF Shares 507

Custodian Fees 329

Shareholders’ Reports and Proxy—Investor Shares 61

Shareholders’ Reports and Proxy—ETF Shares 331

Trustees’ Fees and Expenses 10

Total Expenses 14,241

Net Investment Income 421,962

Realized Net Gain (Loss)

Investment Securities Sold1 522,469


Realized Net Gain (Loss) 521,018

Change in Unrealized Appreciation (Depreciation)

Investment Securities1 (465,012)


Change in Unrealized Appreciation (Depreciation) (471,051)

Net Increase (Decrease) in Net Assets Resulting from Operations 471,929

1 Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $513,000, ($22,000), and $10,000, respectively. Purchases and sales are for temporary cash investment purposes.

Statement of Operations



17

Statement of Changes in Net Assets



Six Months Ended Year Ended

April 30, October 31,

2018 2017

($000) ($000)

Increase (Decrease) in Net Assets

Operations

Net Investment Income 421,962 763,919

Realized Net Gain (Loss) 521,018 853,945

Change in Unrealized Appreciation (Depreciation) (471,051) 2,723,767

Net Increase (Decrease) in Net Assets Resulting from Operations 471,929 4,341,631

Distributions

Net Investment Income

Investor Shares (114,494) (210,236)

ETF Shares (310,777) (567,866)

Realized Capital Gain

Investor Shares — —

ETF Shares — —

Total Distributions (425,271) (778,102)

Capital Share Transactions

Investor Shares 293,174 718,901

ETF Shares 447,975 1,941,695

Net Increase (Decrease) from Capital Share Transactions 741,149 2,660,596

Total Increase (Decrease) 787,807 6,224,125

Net Assets

Beginning of Period 27,600,245 21,376,120

End of Period1 28,388,052 27,600,245

1 Net Assets—End of Period includes undistributed (overdistributed) net investment income of $46,607,000 and $49,916,000.

18

Investor Shares

Six Months

Ended

For a Share Outstanding April 30, Year Ended October 31,

Throughout Each Period 2018 2017 2016 2015 2014 2013

Net Asset Value, Beginning of Period $32.67 $28.20 $26.89 $26.98 $23.83 $19.76

Investment Operations

Net Investment Income .4821 .9271 .854 .815 .727 .667

Net Realized and Unrealized Gain (Loss)

on Investments .042 4.472 1.286 (.088) 3.147 4.063

Total from Investment Operations .524 5.399 2.140 .727 3.874 4.730

Distributions

Dividends from Net Investment Income (.484) (.929) (.830) (.817) (.724) (.660)

Distributions from Realized Capital Gains — — — — — —

Total Distributions (.484) (.929) (.830) (.817) (.724) (.660)

Net Asset Value, End of Period $32.71 $32.67 $28.20 $26.89 $26.98 $23.83

Total Return2 1.60% 19.37% 8.11% 2.78% 16.48% 24.35%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $7,883 $7,590 $5,879 $4,368 $4,066 $3,019

Ratio of Total Expenses to

Average Net Assets 0.15% 0.15% 0.15% 0.16% 0.18% 0.19%

Ratio of Net Investment Income to


Portfolio Turnover Rate3 2% 9% 7% 11% 12% 13%

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 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 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.

Financial Highlights



19

ETF Shares

Six Months

Ended

For a Share Outstanding April 30, Year Ended October 31,

Throughout Each Period 2018 2017 2016 2015 2014 2013

Net Asset Value, Beginning of Period $82.46 $71.19 $67.88 $68.11 $60.16 $49.89

Investment Operations

Net Investment Income 1.2481 2.3941 2.203 2.104 1.885 1.732

Net Realized and Unrealized Gain (Loss)

on Investments .114 11.301 3.245 (.222) 7.943 10.247

Total from Investment Operations 1.362 13.695 5.448 1.882 9.828 11.979

Distributions

Dividends from Net Investment Income (1.252) (2.425) (2.138) (2.112) (1.878) (1.709)

Distributions from Realized Capital Gains — — — — — —

Total Distributions (1.252) (2.425) (2.138) (2.112) (1.878) (1.709)

Net Asset Value, End of Period $82.57 $82.46 $71.19 $67.88 $68.11 $60.16

Total Return 1.63% 19.46% 8.18% 2.84% 16.56% 24.43%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $20,505 $20,010 $15,497 $11,214 $9,782 $6,918

Ratio of Total Expenses to


Ratio of Net Investment Income to


Portfolio Turnover Rate2 2% 9% 7% 11% 12% 13%

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.

Financial Highlights



20

Notes to Financial Statements


Vanguard High Dividend Yield 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:

Investor Shares and ETF Shares. Investor Shares are available to any investor who meets the fund’s

minimum purchase requirements. ETF Shares are listed for trading on NYSE Arca; they can be

purchased and sold through a broker.

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 April 30, 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.

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 (October 31, 2014–2017), and for the period ended April 30,

2018, and has concluded that no provision for federal income tax is required in the fund’s

financial statements.

21


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 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 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 April 30, 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.

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.

22


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 April 30, 2018, the fund had contributed to Vanguard capital in the amount of

$1,529,000, representing 0.01% of the fund’s net assets and 0.61% 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 April 30, 2018,

based on the inputs used to value them:

Level 1 Level 2 Level 3

Investments ($000) ($000) ($000)

Common Stocks 28,275,612 — —

Temporary Cash Investments 78,821 7,994 —

Futures Contracts—Liabilities1 (1,049) — —

Total 28,353,384 7,994 —

1 Represents variation margin on the last day of the reporting period.

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.

23


During the six months ended April 30, 2018, the fund realized $554,082,000 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 October 31, 2017, the fund had available capital losses totaling $273,476,000 to

offset future net capital gains. Of this amount, $18,315,000 is subject to expiration on October 31,

2018. Capital losses of $255,161,000 realized beginning in fiscal 2012 may be carried forward

indefinitely under the Regulated Investment Company Modernization Act of 2010, but must be

used before any expiring loss carryforwards. The fund will use these capital losses to offset net

taxable capital gains, if any, realized during the year ending October 31, 2018; should the fund

realize net capital losses for the year, the losses will be added to the loss carryforward balance

above.

At April 30, 2018, the cost of investment securities for tax purposes was $23,523,080,000. Net

unrealized appreciation of investment securities for tax purposes was $4,839,347,000, consisting

of unrealized gains of $5,828,961,000 on securities that had risen in value since their purchase and

$989,614,000 in unrealized losses on securities that had fallen in value since their purchase.

E. During the six months ended April 30, 2018, the fund purchased $2,628,549,000 of investment

securities and sold $1,929,313,000 of investment securities, other than temporary cash investments.

Purchases and sales include $1,865,896,000 and $1,683,655,000, respectively, in connection with

in-kind purchases and redemptions of the fund’s capital shares.

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

Six Months Ended Year Ended

April 30, 2018 October 31, 2017

Amount Shares Amount Shares

($000) (000) ($000) (000)

Investor Shares

Issued 1,010,886 29,862 2,032,133 66,558

Issued in Lieu of Cash Distributions 91,082 2,773 169,270 5,467

Redeemed (808,794) (23,995) (1,482,502) (48,193)

Net Increase (Decrease)—Investor Shares 293,174 8,640 718,901 23,832

ETF Shares

Issued 2,136,750 25,390 4,601,220 59,187

Issued in Lieu of Cash Distributions — — — —

Redeemed (1,688,775) (19,725) (2,659,525) (34,200)

Net Increase (Decrease)—ETF Shares 447,975 5,665 1,941,695 24,987

G. Management has determined that no material events or transactions occurred subsequent to

April 30, 2018, that would require recognition or disclosure in these financial statements.

24

About Your Fund’s Expenses

25

As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management,

administrative services, and shareholder reports (like this one), among others. Operating expenses,

which are deducted from a fund’s gross income, directly reduce the investment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as

the expense ratio. The following examples are intended to help you understand the ongoing costs (in

dollars) of investing in your fund and to compare these costs with those of other mutual funds. The

examples are based on an investment of $1,000 made at the beginning of the period shown and held

for the entire period.

The accompanying table illustrates your fund’s costs in two ways:

• Based on actual fund return. This section helps you to estimate the actual expenses that you

paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return,

and the third column shows the dollar amount that would have been paid by an investor who started

with $1,000 in the fund. You may use the information here, together with the amount you invested,

to estimate the expenses that you paid over the period.

To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided

by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading

”Expenses Paid During Period.“

• Based on hypothetical 5% yearly return. This section is intended to help you compare your

fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5%

before expenses, but that the expense ratio is unchanged. In this case—because the return used is

not the fund’s actual return—the results do not apply to your investment. The example is useful in

making comparisons because the Securities and Exchange Commission requires all mutual funds to

calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this

hypothetical example with the hypothetical examples that appear in shareholder reports of other

funds.

Note that the expenses shown in the table are meant to highlight and help you compare ongoingcosts only and do not reflect transaction costs incurred by the fund for buying and sellingsecurities. Further, the expenses do not include any purchase, redemption, or account servicefees described in the fund prospectus. If such fees were applied to your account, your costswould be higher. Your fund does not carry a “sales load.”

The calculations assume no shares were bought or sold during the period. Your actual costs may

have been higher or lower, depending on the amount of your investment and the timing of any

purchases or redemptions.

You can find more information about the fund’s expenses, including annual expense ratios, in the

Financial Statements section of this report. For additional information on operating expenses and

other shareholder costs, please refer to your fund’s current prospectus.

26

Six Months Ended April 30, 2018


Beginning

Account Value

10/31/2017

Ending

Account Value

4/30/2018

Expenses

Paid During

Period

Based on Actual Fund Return

Investor Shares $1,000.00 $1,016.03 $0.75

ETF Shares 1,000.00 1,016.31 0.40

Based on Hypothetical 5% Yearly Return

Investor Shares $1,000.00 $1,024.05 $0.75

ETF Shares 1,000.00 1,024.40 0.40

The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios forthat period are 0.15% for Investor Shares and 0.08% for ETF Shares. The dollar amounts shown as “Expenses Paid” are equal to theannualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recentsix-month period, then divided by the number of days in the most recent 12-month period (181/365).

The board of trustees of Vanguard High Dividend Yield Index Fund has renewed the fund’s

investment advisory arrangement with The Vanguard Group, Inc. (Vanguard), through its Equity

Index Group. The board determined that continuing the fund’s internalized management structure

was in the best interests of the fund and its shareholders.

The board based its decision upon an evaluation of the advisor’s investment staff, portfolio

management process, and performance. This evaluation included information provided to the board

by Vanguard’s Portfolio Review Department, which is responsible for fund and advisor oversight

and product management. The Portfolio Review Department met regularly with the advisor and

made monthly presentations to the board during the fiscal year that directed the board’s focus to

relevant information and topics.

The board, or an investment committee made up of board members, also received information

throughout the year during advisor presentations. For each advisor presentation, the board was

provided with letters and reports that included information about, among other things, the advisory

firm and the advisor’s assessment of the investment environment, portfolio performance, and

portfolio characteristics.

In addition, the board received monthly reports, which included a Market and Economic Report, a

Fund Dashboard Monthly Summary, and a Fund Performance Report.

Prior to their meeting, the trustees were provided with a memo and materials that summarized the

information they received over the course of the year. They also considered the factors discussed

below, among others. However, no single factor determined whether the board approved the

arrangement. Rather, it was the totality of the circumstances that drove the board’s decision.

Nature, extent, and quality of services

The board reviewed the quality of the fund’s investment management services over both the short

and long term, and took into account the organizational depth and stability of the advisor. The board

considered that Vanguard has been managing investments for more than three decades. The Equity

Index Group adheres to a sound, disciplined investment management process; the team has

considerable experience, stability, and depth.

The board concluded that Vanguard’s experience, stability, depth, and performance, among other

factors, warranted continuation of the advisory arrangement.

Investment performance

The board considered the short- and long-term performance of the fund, including any periods of

outperformance or underperformance compared with its target index and peer group. The board

concluded that the performance was such that the advisory arrangement should continue.

Information about the fund’s most recent performance can be found in the Performance Summary

section of this report.

Cost

The board concluded that the fund’s expense ratio was well below the average expense ratio charged

by funds in its peer group and that the fund’s advisory expenses were also well below the peer-group

average. Information about the fund’s expenses appears in the About Your Fund’s Expenses section

of this report as well as in the Financial Statements section.

Trustees Approve Advisory Arrangement

27

The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique

“at-cost” structure. Unlike most other mutual fund management companies, Vanguard is owned

by the funds it oversees and produces “profits” only in the form of reduced expenses for fund

shareholders.

The benefit of economies of scale

The board concluded that the fund’s at-cost arrangement with Vanguard ensures that the fund will

realize economies of scale as it grows, with the cost to shareholders declining as the fund’s assets

increase.

The board will consider whether to renew the advisory arrangement again after a one-year period.

28

Glossary

29

30-Day SEC Yield. A fund’s 30-day SEC yield is derived using a formula specified by the U.S.

Securities and Exchange Commission. Under the formula, data related to the fund’s security

holdings in the previous 30 days are used to calculate the fund’s hypothetical net income for that

period, which is then annualized and divided by the fund’s estimated average net assets over the

calculation period. For the purposes of this calculation, a security’s income is based on its current

market yield to maturity (for bonds), its actual income (for asset-backed securities), or its

projected dividend yield (for stocks). Because the SEC yield represents hypothetical annualized

income, it will differ—at times significantly—from the fund’s actual experience. As a result, the

fund’s income distributions may be higher or lower than implied by the SEC yield.

Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups

and downs of a given market index. The index is assigned a beta of 1.00. Compared with a given

index, a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12%

when the index rose or fell by 10%. For this report, beta is based on returns over the past 36

months for both the fund and the index. Note that a fund’s beta should be reviewed in conjunction

with its R-squared (see definition). The lower the R-squared, the less correlation there is between

the fund and the index, and the less reliable beta is as an indicator of volatility.

Dividend Yield. Dividend income earned by stocks, expressed as a percentage of the aggregate

market value (or of net asset value, for a fund). The yield is determined by dividing the amount of

the annual dividends by the aggregate value (or net asset value) at the end of the period. For a

fund, the dividend yield is based solely on stock holdings and does not include any income

produced by other investments.

Earnings Growth Rate. The average annual rate of growth in earnings over the past five years for

the stocks now in a fund.

Equity Exposure. A measure that reflects a fund’s investments in stocks and stock futures. Any

holdings in short-term reserves are excluded.

Expense Ratio. A fund’s total annual operating expenses expressed as a percentage of the fund’s

average net assets. The expense ratio includes management and administrative expenses, but

does not include the transaction costs of buying and selling portfolio securities.

Foreign Holdings. The percentage of a fund represented by securities or depositary receipts of

companies based outside the United States.

Inception Date. The date on which the assets of a fund (or one of its share classes) are first

invested in accordance with the fund’s investment objective. For funds with a subscription period,

the inception date is the day after that period ends. Investment performance is measured from

the inception date.

Median Market Cap. An indicator of the size of companies in which a fund invests; the midpoint

of market capitalization (market price x shares outstanding) of a fund’s stocks, weighted by the

proportion of the fund’s assets invested in each stock. Stocks representing half of the fund’s

assets have market capitalizations above the median, and the rest are below it.

Price/Book Ratio. The share price of a stock divided by its net worth, or book value, per share.

For a fund, the weighted average price/book ratio of the stocks it holds.

30

Price/Earnings Ratio. The ratio of a stock’s current price to its per-share earnings over the past

year. For a fund, the weighted average P/E of the stocks it holds. P/E is an indicator of market

expectations about corporate prospects; the higher the P/E, the greater the expectations for a

company’s future growth.

R-Squared. A measure of how much of a fund’s past returns can be explained by the returns

from the market in general, as measured by a given index. If a fund’s total returns were precisely

synchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore no

relationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based

on returns over the past 36 months for both the fund and the index.

Return on Equity. The annual average rate of return generated by a company during the past five

years for each dollar of shareholder’s equity (net income divided by shareholder’s equity). For a

fund, the weighted average return on equity for the companies whose stocks it holds.

Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities

that can be readily converted to cash.

Turnover Rate. An indication of the fund’s trading activity. Funds with high turnover rates incur

higher transaction costs and may be more likely to distribute capital gains (which may be taxable

to investors). The turnover rate excludes in-kind transactions, which have minimal impact on

costs.

The People Who Govern Your Fund

The trustees of your mutual fund are there to see that the fund is operated and managed in your

best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also

serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard

funds and provides services to them on an at-cost basis.

A majority of Vanguard’s board members are independent, meaning that they have no affiliation

with Vanguard or the funds they oversee, apart from the sizable personal investments they have

made as private individuals. The independent board members have distinguished backgrounds

in business, academia, and public service. Each of the trustees and executive officers oversees

208 Vanguard funds.

Information for each trustee and executive officer of the fund appears below. The mailing address

of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the

trustees is in the Statement of Additional Information, which can be obtained, without charge,

by contacting Vanguard at 800-662-7447, or online at vanguard.com.

Interested Trustees1

F. William McNabb III

Born in 1957. Trustee since July 2009. Principal

occupation(s) during the past five years and

other experience: chairman of the board

(January 2010–present) of Vanguard and of each

of the investment companies served by Vanguard,

trustee (2009–present) of each of the investment

companies served by Vanguard, and director

(2008–present) of Vanguard. Chief executive officer

and president (2008–2017) of Vanguard and each

of the investment companies served by Vanguard,

managing director (1995–2008) of Vanguard,

and director (1997–2018) of Vanguard Marketing

Corporation. Director (2018–present) of

UnitedHealth Group.

Mortimer J. Buckley

Born in 1969. Trustee since January 2018. Principal

occupation(s) during the past five years and

other experience: chief executive officer

(January 2018–present) of Vanguard; chief executive

officer, president, and trustee (January 2018–present)

of each of the investment companies served by

Vanguard; president and director (2017–present) of

Vanguard; and president (February 2018–present) of

Vanguard Marketing Corporation. Chief investment

officer (2013–2017), managing director (2002–2017),

head of the Retail Investor Group (2006–2012), and

chief information officer (2001–2006) of Vanguard.

Chairman of the board (2011–2017) of the Children’s

Hospital of Philadelphia.

Independent Trustees

Emerson U. Fullwood


occupation(s) during the past five years and other

experience: executive chief staff and marketing officer

for North America and corporate vice president (retired

2008) of Xerox Corporation (document management

products and services). Former president of the

Worldwide Channels Group, Latin America, and

Worldwide Customer Service and executive chief

staff officer of Developing Markets of Xerox. Executive

in residence and 2009–2010 Distinguished Minett

Professor at the Rochester Institute of Technology.

Lead director of SPX FLOW, Inc. (multi-industry

manufacturing). Director of the University of Rochester

Medical Center, the Monroe Community College

Foundation, the United Way of Rochester, North

Carolina A&T University, and Roberts Wesleyan

College. Trustee of the University of Rochester.

Amy Gutmann

Born in 1949. Trustee since June 2006. Principal


experience: president (2004–present) of the University

of Pennsylvania. Christopher H. Browne Distinguished

Professor of Political Science, School of Arts and

Sciences, and professor of communication, Annenberg

School for Communication, with secondary faculty

appointments in the Department of Philosophy, School

of Arts and Sciences, and at the Graduate School of

Education, University of Pennsylvania. Trustee of the

National Constitution Center.

1 Mr. McNabb and Mr. Buckley are considered “interested persons,” as defined in the Investment Company Act of 1940, because they are officers of the Vanguard funds.

JoAnn Heffernan Heisen



experience: corporate vice president of Johnson &

Johnson (pharmaceuticals/medical devices/consumer

products) and member of its executive committee

(1997–2008). Chief global diversity officer (retired

2008), vice president and chief information officer

(1997–2006), controller (1995–1997), treasurer

(1991–1995), and assistant treasurer (1989–1991)

of Johnson & Johnson. Director of Skytop Lodge

Corporation (hotels) and the Robert Wood Johnson

Foundation. Member of the advisory board of the

Institute for Women’s Leadership at Rutgers University.

F. Joseph Loughrey

Born in 1949. Trustee since October 2009. Principal


experience: president and chief operating officer

(retired 2009) and vice chairman of the board

(2008–2009) of Cummins Inc. (industrial machinery).

Chairman of the board of Hillenbrand, Inc. (specialized

consumer services), Oxfam America, and the Lumina

Foundation for Education. Director of the V Foundation

for Cancer Research. Member of the advisory council

for the College of Arts and Letters and chair of the

advisory board to the Kellogg Institute for International

Studies, both at the University of Notre Dame.

Mark Loughridge

Born in 1953. Trustee since March 2012. Principal


experience: senior vice president and chief financial

officer (retired 2013) of IBM (information technology

services). Fiduciary member of IBM’s Retirement

Plan Committee (2004–2013), senior vice president

and general manager (2002–2004) of IBM Global

Financing, vice president and controller (1998–2002)

of IBM, and a variety of other prior management roles

at IBM. Member of the Council on Chicago Booth.

Scott C. Malpass

Born in 1962. Trustee since March 2012. Principal


experience: chief investment officer (1989–present)

and vice president (1996–present) of the University

of Notre Dame. Assistant professor of finance at the

Mendoza College of Business, University of Notre

Dame, and member of the Notre Dame 403(b)

Investment Committee. Chairman of the board of

TIFF Advisory Services, Inc. Member of the board

of Catholic Investment Services, Inc. (investment

advisors), the board of advisors for Spruceview

Capital Partners, and the board of superintendence

of the Institute for the Works of Religion.

Deanna Mulligan



experience: president (2010–present) and chief

executive officer (2011–present) of The Guardian

Life Insurance Company of America. Chief operating

officer (2010–2011) and executive vice president

(2008–2010) of Individual Life and Disability of

The Guardian Life Insurance Company of America.

Member of the board of The Guardian Life Insurance

Company of America, the American Council of Life

Insurers, the Partnership for New York City (business

leadership), and the Committee Encouraging Corporate

Philanthropy. Trustee of the Economic Club of New

York and the Bruce Museum (arts and science).

Member of the Advisory Council for the Stanford

Graduate School of Business.

André F. Perold

Born in 1952. Trustee since December 2004. Principal


experience: George Gund Professor of Finance and

Banking, Emeritus at the Harvard Business School

(retired 2011). Chief investment officer and co-

managing partner of HighVista Strategies LLC

(private investment firm). Overseer of the Museum

of Fine Arts Boston.

Sarah Bloom Raskin



experience: deputy secretary (2014–2017) of

the United States Department of the Treasury.

Governor (2010–2014) of the Federal Reserve Board.

Commissioner (2007–2010) of financial regulation

for the State of Maryland. Member of the board of

directors (2012–2014) of Neighborhood Reinvestment

Corporation. Director of i(x) Investments, LLC.

Peter F. Volanakis



experience: president and chief operating officer

(retired 2010) of Corning Incorporated (communications

equipment) and director of Corning Incorporated

(2000–2010) and Dow Corning (2001–2010).

Director (2012) of SPX Corporation (multi-industry

manufacturing). Overseer of the Amos Tuck School

of Business Administration, Dartmouth College

(2001–2013). Chairman of the board of trustees of

Colby-Sawyer College. Member of the Board of

Hypertherm Inc. (industrial cutting systems, software,

and consumables).

Executive Officers

Glenn Booraem

Born in 1967. Principal occupation(s) during the past

five years and other experience: principal of Vanguard.

Investment stewardship officer (2017–present),

treasurer (2015–2017), controller (2010–2015),

and assistant controller (2001–2010) of each of

the investment companies served by Vanguard.

Christine M. Buchanan


five years and other experience: principal of Vanguard

and global head of Fund Administration at Vanguard.

Treasurer (2017–present) of each of the investment

companies served by Vanguard. Partner (2005–2017)

at KPMG LLP (audit, tax, and advisory services).

Brian Dvorak



Chief compliance officer (2017–present) of Vanguard

and each of the investment companies served by

Vanguard. Assistant vice president (2017–present) of

Vanguard Marketing Corporation. Vice president and

director of Enterprise Risk Management (2011–2013)

at Oppenheimer Funds, Inc.

Thomas J. Higgins



Chief financial officer (2008–present) and treasurer

(1998–2008) of each of the investment companies

served by Vanguard.

Peter Mahoney



Controller (2015–present) of each of the investment

companies served by Vanguard. Head of International

Fund Services (2008–2014) at Vanguard.

Anne E. Robinson

Born in 1970. Principal occupation(s) during the

past five years and other experience: general

counsel (2016–present) of Vanguard. Secretary

(2016–present) of Vanguard and of each of the

investment companies served by Vanguard.

Managing director (2016–present) of Vanguard.

Director and senior vice president (2016–2018)

of Vanguard Marketing Corporation. Managing

director and general counsel of Global Cards and

Consumer Services (2014–2016) at Citigroup.

Counsel (2003–2014) at American Express.

Michael Rollings

Born in 1963. Principal occupation(s) during the

past five years and other experience: finance

director (2017–present) and treasurer (2017) of each

of the investment companies served by Vanguard.

Managing director (2016–present) of Vanguard. Chief

financial officer (2016–present) of Vanguard. Director

(2016–present) of Vanguard Marketing Corporation.

Executive vice president and chief financial officer

(2006–2016) of MassMutual Financial Group.

Vanguard Senior Management Team

Mortimer J. Buckley James M. Norris

Gregory Davis Thomas M. Rampulla

John James Karin A. Risi

Martha G. King Anne E. Robinson

John T. Marcante Michael Rollings

Chris D. McIsaac

Chairman Emeritus and Senior Advisor

John J. Brennan

Chairman, 1996–2009

Chief Executive Officer and President, 1996–2008

Founder

John C. Bogle

Chairman and Chief Executive Officer, 1974–1996

P.O. Box 2600

Valley Forge, PA 19482-2600

Connect with Vanguard® > vanguard.com

Fund Information > 800-662-7447

Direct Investor Account Services > 800-662-2739

Institutional Investor Services > 800-523-1036

Text Telephone for PeopleWho Are Deaf or Hard of Hearing > 800-749-7273

This material may be used in conjunctionwith the offering of shares of any Vanguardfund only if preceded or accompanied bythe fund’s current prospectus.

All comparative mutual fund data are from Lipper, aThomson Reuters Company, or Morningstar, Inc., unlessotherwise noted.

You can obtain a free copy of Vanguard’s proxy votingguidelines by visiting vanguard.com/proxyreporting or bycalling Vanguard at 800-662-2739. The guidelines arealso available from the SEC’s website, sec.gov. Inaddition, you may obtain a free report on how your fundvoted the proxies for securities it owned during the 12months ended June 30. To get the report, visit eithervanguard.com/proxyreporting or sec.gov.

You can review and copy information about your fund atthe SEC’s Public Reference Room in Washington, D.C. Tofind out more about this public service, call the SEC at202-551-8090. Information about your fund is alsoavailable on the SEC’s website, and you can receivecopies of this information, for a fee, by sending arequest in either of two ways: via email addressed [email protected] or via regular mail addressed to thePublic Reference Section, Securities and ExchangeCommission, Washington, DC 20549-1520.

Source for Bloomberg Barclays indexes: BloombergIndex Services Limited. Copyright 2018, Bloomberg. Allrights reserved.

London Stock Exchange Group companies include FTSEInternational Limited (”FTSE”), Frank Russell Company(”Russell”), MTS Next Limited (”MTS”), and FTSE TMXGlobal Debt Capital Markets Inc. (”FTSE TMX”). Allrights reserved. ”FTSE®”, ”Russell®”, ”MTS®”, ”FTSETMX®” and ”FTSE Russell” and other service marksand trademarks related to the FTSE or Russell indexesare trademarks of the London Stock Exchange Groupcompanies and are used by FTSE, MTS, FTSE TMX andRussell under licence. All information is provided forinformation purposes only. No responsibility or liabilitycan be accepted by the London Stock Exchange Groupcompanies nor its licensors for any errors or for anyloss from use of this publication. Neither the LondonStock Exchange Group companies nor any of itslicensors make any claim, prediction, warranty orrepresentation whatsoever, expressly or impliedly,either as to the results to be obtained from the use ofthe FTSE Indexes or the fitness or suitability of theIndexes for any particular purpose to which they mightbe put.

© 2018 The Vanguard Group, Inc.All rights reserved.Vanguard Marketing Corporation, Distributor.

Q6232 062018

Documents

Vanguard High Dividend Yield Index Fund