Vanguard Institutional Total Stock Market Index Fund

Annual Report | December 31, 2021

Vanguard Institutional Total Stock Market Index Fund

Contents Your Fund's Performance at a Glance . . . . . . . . . . . . . . . . .1 About Your Fund's Expenses . . . . . . . . . . . . . . . . . . . . . . . . . .2 Performance Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Please note: The opinions expressed in this report are just that--informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.

Your Fund's Performance at a Glance

? Vanguard Institutional Total Stock Market Index Fund returned 25.75% for both its Institutional Shares and Institutional Plus Shares for the 12 months ended December 31, 2021.

? The U.S. economy continued to heal over the 12 months. Vaccination programs started to roll out shortly after the beginning of the year, helping hard-hit sectors such as hospitality, leisure, and travel begin to rebound, and more workers returned to the labor force. U.S. stocks turned in a strong performance even with the spread of new COVID-19 variants, a surge in inflation, and Federal Reserve monetary policy turning less accommodative.

? The fund, which offers investors exposure to every segment, size, and style of the U.S. equity market, closely tracked its target index, the CRSP US Total Market Index.

? All 11 stock sectors recorded positive returns for the 12 months. Technology, financial, and consumer discretionary stocks contributed most to the fund's performance.

? For the 10 years ended December 31, 2021, the fund posted average annual returns of 16.34% for Institutional Shares and 16.35% for Institutional Plus Shares.

Market Barometer

Stocks Russell 1000 Index (Large-caps) Russell 2000 Index (Small-caps) Russell 3000 Index (Broad U.S. market) FTSE All-World ex US Index (International)

Bonds Bloomberg U.S. Aggregate Bond Index (Broad taxable market) Bloomberg Municipal Bond Index (Broad tax-exempt market) FTSE Three-Month U.S. Treasury Bill Index

CPI Consumer Price Index

Average Annual Total Returns Periods Ended December 31, 2021

One Year

Three Years

Five Years

26.45% 14.82 25.66

8.36

26.21% 20.02 25.79 13.66

18.43% 12.02 17.97

9.89

-1.54% 1.52 0.05

7.04%

4.79% 4.73 0.95

3.53%

3.57% 4.17 1.11

2.92%

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About Your Fund's Expenses

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 ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would 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.

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Six Months Ended December 31, 2021

Beginning Account Value

6/30/2021

Ending Account Value

12/31/2021

Expenses Paid During

Period

Based on Actual Fund Return

Institutional Total Stock Market Index Fund

Institutional Shares

$1,000.00

$1,090.90

$0.16

Institutional Plus Shares

1,000.00

1,091.10

0.11

Based on Hypothetical 5% Yearly Return

Institutional Total Stock Market Index Fund

Institutional Shares

$1,000.00

$1,025.05

$0.15

Institutional Plus Shares

1,000.00

1,025.11

0.10

The calculations are based on expenses incurred in the most recent six-month period. The fund's annualized six-month expense ratios for that period are 0.03% for Institutional Shares and 0.02% for Institutional Plus Shares. The dollar amounts shown as "Expenses Paid" are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period (184/365).

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Institutional Total Stock Market Index Fund Performance Summary

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at 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.

Cumulative Performance: December 31, 2011, Through December 31, 2021 Initial Investment of $5,000,000

$25,000,000 22,704,690

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

1,000,000

Average Annual Total Returns Periods Ended December 31, 2021

Final Value

One

Five

Ten

of a $5,000,000

Year

Years

Years

Investment

Institutional Total Stock Market Index Fund Institutional Shares

25.75%

18.00%

16.34%

$22,704,690

Spliced Institutional Total Stock Market Index

25.72

18.00

16.31

22,660,788

Dow Jones U.S. Total Stock Market Float Adjusted Index

25.66

17.92

16.24

22,525,162

Spliced Institutional Total Stock Market Index: MSCI US Broad Market Index through January 14, 2013; and the CRSP US Total Market Index thereafter.

Institutional Total Stock Market Index Fund Institutional Plus Shares

Spliced Institutional Total Stock Market Index

Dow Jones U.S. Total Stock Market Float Adjusted Index

One Year

25.75% 25.72

25.66

Five Years

18.00% 18.00

17.92

Ten Years

16.35% 16.31

16.24

Final Value of a $100,000,000

Investment

$454,739,580 453,215,760

450,503,240

See Financial Highlights for dividend and capital gains information. 4

Institutional Total Stock Market Index Fund

Fund Allocation

As of December 31, 2021

Basic Materials

2.0%

Consumer Discretionary

15.9

Consumer Staples

4.7

Energy

2.8

Financials

10.9

Health Care

12.8

Industrials

12.8

Real Estate

3.7

Technology

29.0

Telecommunications

2.6

Utilities

2.8

Other

0.0

The table reflects the fund's investments, except for short-term investments and derivatives. Sector categories are based on the Industry Classification Benchmark ("ICB"), except for the "Other" category (if applicable), which includes securities that have not been provided an ICB classification as of the effective reporting period.

The fund may invest in derivatives (such as futures and swap contracts) for various reasons, including, but not limited to, attempting to remain fully invested and tracking its target index as closely as possible.

The Industry Classification Benchmark ("ICB") is owned by FTSE. FTSE does not accept any liability to any person for any loss or damage arising out of any error or omission in the ICB.

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Institutional Total Stock Market Index Fund

Financial Statements

Schedule of Investments

As of December 31, 2021

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund's Form N-PORT reports are available on the SEC's website at .

Common Stocks (99.6%) Basic Materials (2.0%)

Linde plc Air Products and

Chemicals Inc. Freeport-McMoRan Inc. Ecolab Inc. Newmont Corp. Dow Inc. International Flavors &

Fragrances Inc. Fastenal Co. Nucor Corp. Albemarle Corp. LyondellBasell

Industries NV Class A International Paper Co. Celanese Corp. Class A Avery Dennison Corp. Eastman Chemical Co. CF Industries Holdings Inc. Mosaic Co. FMC Corp. Steel Dynamics Inc. Alcoa Corp. Reliance Steel & Aluminum Co. * Cleveland-Cliffs Inc. Olin Corp. Royal Gold Inc. Huntsman Corp. Valvoline Inc. Scotts Miracle-Gro Co. US Steel Corp. * RBC Bearings Inc. Ashland Global Holdings Inc. Balchem Corp. UFP Industries Inc. Chemours Co. Element Solutions Inc. * Univar Solutions Inc. Avient Corp. Timken Co. * Hexcel Corp. Commercial Metals Co. * MP Materials Corp.

Shares

380,602 164,507 1,090,951 191,782 591,636 548,575 188,822 427,127 212,112

86,120

196,216 287,593 80,142 61,143 98,273 157,558 275,777 93,291 137,388 136,884 45,722 335,915 107,752 48,803 146,828 134,879 28,818 182,519 21,462 38,675 24,390 43,530 116,973 157,815 128,219 64,089 49,620 62,051 88,436 66,751

Market Value? ($000)

131,852 50,053 45,525 44,990 36,693 31,115 28,446 27,362 24,213 20,132

18,097 13,511 13,469 13,242 11,882 11,152 10,835 10,252 8,528 8,156

7,417 7,313 6,198 5,135 5,121 5,030 4,640 4,346 4,335 4,164 4,112 4,005 3,926 3,832 3,635 3,586 3,438 3,214 3,209 3,032

Sensient Technologies Corp.

* Livent Corp. Mueller Industries Inc. Westlake Chemical Corp.

* Arconic Corp. Quaker Chemical Corp. Cabot Corp. Hecla Mining Co.

* Ingevity Corp. Tronox Holdings plc Class A Boise Cascade Co. NewMarket Corp. Stepan Co. Minerals Technologies Inc. GrafTech International Ltd. Innospec Inc. Compass Minerals International Inc. Materion Corp. Worthington Industries Inc.

* GCP Applied Technologies Inc.

Kaiser Aluminum Corp. Carpenter Technology

Corp. * Kraton Corp.

AdvanSix Inc. Schnitzer Steel

Industries Inc. Class A * Coeur Mining Inc. * Energy Fuels Inc. * Sylvamo Corp. * Amyris Inc. Schweitzer-Mauduit International Inc. * Century Aluminum Co. Neenah Inc. * Uranium Energy Corp. Hawkins Inc. Resolute Forest Products Inc. Glatfelter Corp. * TimkenSteel Corp.

Shares

29,634 120,916 39,356 23,868

69,134 9,806 39,115

397,219 28,516 84,926 28,644

5,936 15,567 25,484 146,749 18,742 26,266 14,283 22,578 38,148 12,490 36,530 22,478 20,329

17,746 179,448 110,615

27,902 133,190 22,284 39,339

13,440 179,823

15,169 37,091 32,675 32,825

Market Value? ($000)

2,965 2,948 2,336 2,318 2,282 2,263 2,198 2,074 2,045 2,041 2,039 2,034 1,935 1,864 1,736 1,693 1,342 1,313 1,234 1,208 1,173 1,066 1,041

961

921 904 844 778 721 666 651 622 602 598 566 562 542

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