Vanguardfi 500 Index Fund

Vanguard? 500 Index Fund

Vanguard?

Product Summary Seeks to track the performance of the S&P 500 Index. U.S. large-cap equity diversified across growth and value styles. Passively managed, full-replication approach. Fund remains fully invested. Low expenses minimize net tracking error.

Note: The Investor Shares are closed to new investors.

Market capitalization

Vanguard Style View: Large Blend Index portfolio of large-capitalization U.S. stocks diversified across investment styles.

Investment style Value Blend Growth Large

Mid

Small

Central tendency Expected range of fund holdings

Quarterly Commentary

The financial markets were volatile in the fourth quarter of 2022 but regained some of the ground lost earlier in the year. Even amid fears of a global recession, investor sentiment improved on the prospect that inflation, while still running hot, might have peaked. Another boost came from major central banks including the Federal Reserve, the Bank of England, and the European Central Bank slowing the pace of their interest rate hikes late in the quarter. Despite some backsliding in December, stocks ended the three months up significantly, with Europe seeing particularly strong gains. Corporate bonds benefited from the shift in sentiment, helping the global bond market to also post a positive return. The broad U.S. investment-grade bond market returned almost 2% (as measured by the Bloomberg U.S. Aggregate Float Adjusted Index). For the quarter ended December 31, the S&P 500 Index returned 7.56%. Health care (+12.8%), financials (+13.6%), and industrials (+19.2%) were the top contributors. The only detractors were consumer discretionary (-10.2%) and communication services (-1.4%). For the 12-month period ended December 31, 2022, the index returned -18.11%. Information technology (-28.2%), consumer discretionary (-37.1%), and communication services (-39.9%) detracted most from performance. The only contributor was energy (+65.8%).

People and Process Vanguard 500 Index Fund seeks to track the investment performance of the Standard & Poor's 500 Index, an unmanaged benchmark representing U.S. large-capitalization stocks. Using full replication, the portfolio holds all stocks in the same capitalization weighting as the index. The experience and stability of Vanguard's Equity Index Group have permitted continuous refinement of techniques for reducing tracking error. The group uses proprietary software to implement trading decisions that accommodate cash flow and maintain close correlation with index characteristics. Vanguard's refined indexing process, combined with low management fees and efficient trading, has provided tight tracking net of expenses.

Vanguard Equity Index Group Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world's largest equity and fixed income managers. As chief investment officer, Gregory Davis, CFA, oversees Vanguard's Equity Index, Quantitative Equity, and Fixed Income Groups. Rodney Comegys, Principal and global head of Vanguard's Equity Index Group, is responsible for all equity index funds. The Equity Index Group manages indexed equity portfolios covering U.S. and international markets. It has developed sophisticated portfolio construction methodologies and efficient trading strategies that seek to deliver returns that are highly correlated with target portfolio benchmarks. The group has advised Vanguard 500 Index Fund since 1976. Investment Manager Biographies Donald M. Butler, CFA, Principal. Portfolio manager. Advised the fund since 2016. Worked in investment management since 1997. B.S.B.A., Shippensburg University. Michelle Louie, CFA. Portfolio manager. Advised the fund since 2017. Worked in investment management since 2011. B.S., The American University. M.B.A., Georgia Institute of Technology.

As of December 31, 2022

Vanguard 500 Index Fund

Total Returns

500 Index Fund Investor Shares (8/31/1976) Admiral Shares (11/13/2000) Institutional Select Shares (6/24/2016)

S&P 500 Index

Expense Ratio

0.14% 0.04 0.01

--

Quarter

7.52% 7.55 7.56 7.56

Year to Date

-18.23% -18.15 -18.13 -18.11

1 Year

-18.23% -18.15 -18.13 -18.11

3 Years

7.51% 7.62 7.65 7.66

5 Years

9.28% 9.39 9.42 9.42

10 Years

Since Inception

12.41% 12.52

-- 12.56

-- -- 12.24% --

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at performance. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. Figures for periods of less than one year are cumulative returns. All other figures represent average annual returns. Performance figures include the reinvestment of all dividends and any capital gains distributions. All returns are net of expenses. Note: Admiral class shareholders are required to maintain specific minimum balances and meet other special criteria.

As of December 31, 2022

Vanguard 500 Index Fund

Quarterly Returns: Investor Shares

Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012

1st Quarter -4.63% 6.15

-19.63 13.62 -0.79

6.03 1.31 0.91 1.76 10.57 12.54

2nd Quarter -16.13% 8.51 20.52 4.27 3.40 3.05 2.42 0.26 5.19 2.87 -2.78

3rd Quarter -4.92% 0.54 8.89 1.67 7.67 4.45 3.82 -6.48 1.09 5.20 6.31

4th Quarter 7.52%

10.99 12.12

9.03 -13.55

6.61 3.80 7.00 4.89 10.46 -0.42

500 Index -18.23% 28.53 18.25 31.33 -4.52 21.67 11.82 1.25 13.51 32.18 15.82

S&P 500 Index

-18.11% 28.71 18.40 31.49 -4.38 21.83 11.96

1.38 13.69 32.39 16.00

Year-End Assets

(Millions) $3,093 4,512 4,504 4,723 23,162 27,656 26,652 26,092 28,040 27,758 24,821

Quarterly Returns: Admiral Shares

Year 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012

1st Quarter -4.61% 6.18

-19.61 13.65 -0.77

6.05 1.34 0.94 1.79 10.60 12.57

2nd Quarter -16.11% 8.54 20.54 4.29 3.42 3.07 2.45 0.28 5.22 2.90 -2.75

3rd Quarter -4.89% 0.57 8.92 1.69 7.70 4.48 3.84 -6.45 1.12 5.23 6.34

4th Quarter 7.55%

11.02 12.15

9.06 -13.53

6.64 3.82 7.04 4.92 10.50 -0.39

500 Index -18.15% 28.66 18.37 31.46 -4.43 21.79 11.93 1.36 13.64 32.33 15.96

S&P 500 Index

-18.11% 28.71 18.40 31.49 -4.38 21.83 11.96

1.38 13.69 32.39 16.00

Year-End Assets

(Millions) $367,498

453,239 359,553 319,624 230,375 235,232 181,513 152,740 143,043

82,357 59,749

As of December 31, 2022

Vanguard 500 Index Fund

Quarterly Returns: Institutional Select Shares

Year 2022 2021 2020 2019 2018 2017 2016 1

1st Quarter -4.61% 6.18

-19.60 13.65 -0.76

6.06 --

2nd Quarter -16.10% 8.55 20.55 4.30 3.43 3.09 3.05

3rd Quarter -4.89% 0.58 8.93 1.70 7.70 4.49 3.85

1 Since inception of the share class, 6/24/2016.

4th Quarter 7.56%

11.02 12.15

9.07 -13.52

6.64 3.83

500 Index -18.13% 28.70 18.40 31.49 -4.40 21.83 11.12

S&P 500 Index

-18.11% 28.71 18.40 31.49 -4.38 21.83 11.11

Year-End

Assets (Millions) $111,968 118,481

94,870 81,230 56,531 44,907 17,753

Fund Facts

Fund Number Ticker Newspaper Listing CUSIP Number Assets (millions)

(Total $744,770) Inception Expense Ratio (as of 4/2022)

Investor Shares 0040 VFINX 500

922908108 $3,093

8/31/1976

0.14%

Equity Characteristics

Number of stocks Median market cap Average market cap Price/earnings ratio Price/book ratio Return on equity Earnings growth rate Equity yield (dividend) Foreign holdings Short-term reserves Turnover rate (fiscal year end)

Admiral Shares

0540 VFIAX 500Adml

Institutional Select Shares 1940 VFFSX

Van500IxInstSel

922908710 $367,498

922908348 $111,968

11/13/2000 0.04%

6/24/2016 0.01%

500 Index

S&P 500 Index

506

503

$150.4 Billion $150.4 Billion $417.8 Billion $417.5 Billion

19.1x

19.1x

3.6x 23.3%

3.6x 23.3%

19.4%

19.4%

1.7% 0.1%

1.7% 0.0%

0.0%

--

2.3%

--

Volatility Measures

R-Squared

Beta

S&P 500 Index

1.00

1.00

DJ US Total Stock Mkt Float Adj Idx

0.99

0.97

R-squared and beta are calculated from trailing 36-month fund returns relative to the associated benchmark.

Top 10 Largest Holdings

% of Total Net Assets

Apple Inc.

6.0 %

Microsoft Corp.

5.5

Alphabet Inc.

3.1

Inc.

2.3

Berkshire Hathaway Inc.

1.7

UnitedHealth Group Inc.

1.5

Johnson & Johnson

1.4

Exxon Mobil Corp.

1.4

JPMorgan Chase & Co.

1.2

NVIDIA Corp.

1.1

Total

25.2 %

The holdings listed exclude any temporary cash investments and equity index products.

As of December 31, 2022

Vanguard 500 Index Fund

Sector Diversification (% of Stocks)

500 Index

S&P 500 Overweight/ Index Underweight

Communication Services

7.3%

7.3%

0.0

Consumer Discretionary

9.8

9.8

0.0

Consumer Staples Energy

7.2

7.2

0.0

5.2

5.2

0.0

Financials Health Care

11.6

11.7

-0.1

15.8

15.8

0.0

Industrials

8.7

8.7

0.0

Information Technology

25.8

25.7

0.1

Materials

2.7

2.7

0.0

Other

0.0

0.0

0.0

Real Estate

2.7

2.7

0.0

Utilities

3.2

3.2

0.0

Total

100.0%

100.0%

Sector categories are based on the Global Industry Classification Standard (GICS), except for the Other category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.

As of December 31, 2022

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