Vanguardfi Small-Cap Value Index Fund

Vanguard ?

Vanguard? Small-Cap Value Index Fund

Investment Approach

Seeks to track the performance of the CRSP US Small Cap Value

Index.

Vanguard Style View: Small Value

Index portfolio of small-capitalization value stocks.

Small-cap value equity.

Fund remains fully invested.

Low expenses minimize net tracking error.

Note: The Investor Shares are closed to new investors.

Investment style

Value Blend Growth

Market capitalization

Passively managed, full-replication approach.

Large

Mid

Small

Central tendency

Expected range of fund holdings

Quarterly Commentary

People and Process

The pace of inflation and the timing of potential interest rate cuts

remained center stage in the second quarter of 2024. Financial

markets lost ground in April amid slow or stalled progress on inflation

and strong economic data from some markets, including the United

States. This delayed expectations for monetary easing. However,

global stocks soon resumed their upward trajectory, and enthusiasm

about artificial intelligence in the tech sector helped push a number of

indexes to record highs. In the final month of the period, the Bank of

Canada and the European Central Bank cut policy rates.

Vanguard Small-Cap Value Index Fund seeks to track the investment

performance of the CRSP US Small Cap Value Index, an unmanaged

benchmark representing value stocks of small U.S. companies. The

fund attempts to replicate the target index by investing all, or

substantially all, of its assets in the stocks that make up the index,

holding each stock in approximately the same proportion as its

weighting in 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.

Global stocks returned 2.42% for the quarter, as measured by the

FTSE Global All Cap Index. U.S. and emerging markets equities led the

way, while those in Europe and the Asia-Pacific region lagged.

The fund��s benchmark, the CRSP US Small Cap Value Index, returned

�C4.35% for the quarter ended June 30. Its growth counterpart, the

CRSP US Small Cap Growth Index, returned �C3.89%.

Industrials (�C6.2%), consumer discretionary (�C7.5%), and basic

materials (�C7.5%) were the top detractors. They accounted for 45.0%

of the index��s weighting at quarter-end and subtracted about 3.2

percentage points from its result.

Utilities (+2.7%) was the sole contributor.

For the 12 months ended June 30, 2024, the index returned 12.85%. All

industry groups added to the benchmark��s results. Financials

(+22.6%), industrials (+15.5%), and consumer discretionary (+7.9%)

were the top contributors.

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, Investment Strategy, 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 Small-Cap Value Index

Fund since 1998.

Investment Manager Biographies

Gerard C. O��Reilly, Principal. Portfolio manager. Advised the fund

since 2016. Worked in investment management since 1992. B.S.,

Villanova University.

Nick Birkett, CFA. Portfolio manager. Advised the fund since 2023.

Worked in investment management since 2005. BSc, University of

Bath.

As of June 30, 2024

Vanguard Small-Cap Value Index Fund

Total Returns

Expense

Ratio

Quarter

Year

to Date

1 Year

3 Years

5 Years

10 Years

Small-Cap Value Index Fund

Investor Shares (5/21/1998)

0.19%

-4.37%

2.40%

12.73%

3.77%

9.05%

7.76%

Admiral Shares (9/27/2011)

0.07

-4.34

2.47

12.86

3.89

9.18

7.89

Institutional Shares (12/7/1999)

0.06

-4.35

2.47

12.86

3.91

9.19

7.90

��

-4.35

2.48

12.85

3.90

9.16

7.89

Spliced Small-Cap Value Index

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: Spliced Small-Cap Value Index: S&P SmallCap 600 Value Index (formerly known as the S&P SmallCap 600/Barra Value Index) through May 16, 2003; MSCI US

Small Cap Value Index through April 16, 2013; CRSP US Small Cap Value Index thereafter. Admiral class shareholders are required to maintain specific minimum

balances and meet other special criteria. Institutional class shareholders are required to maintain a minimum balance of $5 million.

As of June 30, 2024

Vanguard Small-Cap Value Index Fund

Quarterly Returns: Investor Shares

Year-End

2nd Quarter

Assets

(Millions)

1st Quarter

2024

7.08%

2023

0.61

4.61

2022

-1.24

2021

16.78

2020

-34.89

2019

13.32

2018

-2.10

2017

1.92

2016

3.48

3.60

2015

3.46

-1.37

-9.14

2.71

-4.78

-4.64

1,972

2014

3.40

4.73

-5.46

7.83

10.39

10.63

2,293

��

4th Quarter

Small-Cap

Value Index

Year

-4.37%

3rd Quarter

Spliced

Small-Cap

Value Index

��

��

15.86%

��

$91

15.91%

112

-3.09%

13.60%

-14.48

-3.88

11.57

-9.43

-9.27

149

5.36

-2.20

6.34

27.96

28.15

208

20.75

4.00

29.31

5.72

5.75

234

1.98

-0.97

7.13

22.61

22.76

255

5.22

3.16

-17.51

-12.34

-12.27

1,501

0.42

4.38

4.53

11.67

11.83

2,060

5.75

9.95

24.65

24.82

2,357

Quarterly Returns: Admiral Shares

Year-End

Year

1st Quarter

2nd Quarter

2024

7.13%

2023

0.63

-4.34%

4.65

2022

-1.20

3rd Quarter

��

4th Quarter

Small-Cap

Value Index

Spliced

Small-Cap

Value Index

Assets

(Millions)

��

��

��

-3.07%

13.63%

15.99%

15.91%

$19,370

19,421

-14.45

-3.86

11.61

-9.31

-9.27

17,505

19,307

2021

16.81

5.41

-2.20

6.38

28.09

28.15

2020

-34.87

20.78

4.04

29.33

5.85

5.75

14,314

2019

13.36

2.00

-0.93

7.17

22.76

22.76

13,907

2018

-2.07

5.28

3.19

-17.49

-12.23

-12.27

10,167

2017

1.98

0.44

4.39

4.56

11.80

11.83

11,278

2016

3.49

3.65

5.76

9.98

24.78

24.82

9,469

2015

3.51

-1.36

-9.12

2.76

-4.65

-4.64

6,467

2014

3.45

4.76

-5.43

7.87

10.55

10.63

5,774

As of June 30, 2024

Vanguard Small-Cap Value Index Fund

Quarterly Returns: Institutional Shares

Year-End

Year

1st Quarter

2nd Quarter

2024

7.13%

2023

0.64

4.64

2022

-1.21

-14.45

2021

16.78

5.41

2020

-34.87

2019

13.38

2018

3rd Quarter

-4.35%

4th Quarter

Spliced

Small-Cap

Value Index

��

-3.05%

13.61%

15.99%

15.91%

-3.87

11.62

-9.31

-9.27

4,797

-2.19

6.40

28.11

28.15

4,733

20.80

4.03

29.34

5.86

5.75

3,774

2.02

-0.91

7.16

22.81

22.76

3,632

-2.06

5.28

3.19

-17.51

-12.23

-12.27

3,077

2017

1.99

0.42

4.41

4.56

11.80

11.83

3,649

2016

3.50

3.67

5.74

10.00

24.80

24.82

2,882

2015

3.50

-1.33

-9.14

2.75

-4.67

-4.64

2,334

2014

3.45

4.80

-5.45

7.89

10.59

10.63

1,927

Investor

Shares

Admiral

Shares

Institutional

Shares

0860

5860

0865

Ticker

VISVX

VSIAX

VSIIX

Newspaper

Listing

SmVal

SmValAdml

SmValInst

922908793

921937686

922908785

$91

$19,370

$5,464

5/21/1998

9/27/2011

12/7/1999

0.19%

0.07%

0.06%

Fund Number

CUSIP Number

Assets (millions)

(Total $52,497)

Inception

Expense Ratio

(as of 4/2024)

��

Assets

(Millions)

��

Fund Facts

��

Small-Cap

Value Index

$5,464

5,564

Volatility Measures

R-Squared

Beta

Spliced Small Cap Value Index

1.00

1.00

DJ US Total Stock Mkt Float Adj Idx

0.79

1.01

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

Booz Allen Hamilton Holding Corp.

0.6%

Carlisle Cos. Inc.

0.6

First Citizens BancShares Inc.

0.6

EMCOR Group Inc.

0.6

Builders FirstSource Inc.

0.5

Reliance Inc.

0.5

Atmos Energy Corp.

0.5

NRG Energy Inc.

0.5

IDEX Corp.

0.5

Bunge Global SA

0.5

Total

5.4 %

The holdings listed exclude any temporary cash investments and equity index

products.

As of June 30, 2024

Vanguard Small-Cap Value Index Fund

Equity Characteristics

Small-Cap

Value Index

Number of stocks

CRSP US

Small Cap

Value Index

848

842

Median market cap

$6.8 Billion

$6.8 Billion

Average market cap

$7.6 Billion

$7.6 Billion

Price/earnings ratio

14.1x

14.1x

Price/book ratio

1.7x

1.7x

Return on equity

11.3%

11.5%

Earnings growth rate

13.5%

13.6%

Equity yield (dividend)

2.1%

2.1%

Foreign holdings

0.0%

0.0%

Short-term reserves

0.0%

��

Turnover rate (fiscal year end)

15.6%

��

Sector Diversification (% of Stocks)

Small-Cap

Value Index

Basic Materials

Consumer Discretionary

Consumer Staples

Energy

5.7%

CRSP US

Small Cap

Value Index

5.7%

Overweight/

Underweight

0.0

15.7

15.8

-0.1

3.5

3.4

0.1

4.7

4.7

0.0

20.3

20.3

0.0

6.2

6.2

0.0

Industrials

23.5

23.5

0.0

Other

0.0

0.0

0.0

Real Estate

8.5

8.5

0.0

Technology

6.2

6.2

0.0

Telecommunications

1.0

1.0

0.0

4.7

4.7

0.0

100.0%

100.0%

Financials

Health Care

Utilities

Total

Sector categories are based on the Industry Classification Benchmark system

(��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.

As of June 30, 2024

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