Vanguard International Growth Fund

Annual Report | August 31, 2021

Vanguard International Growth Fund

Contents

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

Advisors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

About Your Fund’s Expenses. . . . . . . . . . . . . . . . . . . . . . . . . 6

Performance Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

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

Liquidity Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . .28

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.

• For the 12 months ended August 31, 2021, Vanguard International Growth Fundreturned 29.89% for Investor Shares and 30.01% for Admiral Shares, outperforming the24.87% return of its benchmark.

• The global economy rebounded faster than many had expected after the sharppandemic-induced contraction in the spring of 2020. Countries that were moresuccessful in containing the virus generally fared better economically.

• Swift and extensive fiscal and monetary support from policymakers was also key tothe rebound. As the 12 months under review reflect the recovery in stocks followingthe sharp downturn at the start of the pandemic, results were excellent.

• The fund outperformed its benchmark in three of the four major global economicregions in which it was invested. Stock selection was strong in Europe, North America,and the Pacific region, while selection in emerging markets detracted.

• The fund also outpaced its benchmark in most industry sectors. Stock selection inhealth care—particularly biotechnology—and information technology provided thebiggest boosts to relative performance. Communication services and financials werethe biggest detractors.

Market Barometer

Average Annual Total ReturnsPeriods Ended August 31, 2021

One Year Three Years Five Years

Stocks

Russell 1000 Index (Large-caps) 32.25% 18.42% 18.24%

Russell 2000 Index (Small-caps) 47.08 10.75 14.38

Russell 3000 Index (Broad U.S. market) 33.04 17.85 17.97

FTSE All-World ex US Index (International) 25.74 9.82 10.23

Bonds

Bloomberg U.S. Aggregate Bond Index(Broad taxable market) -0.08% 5.43% 3.11%

Bloomberg Municipal Bond Index(Broad tax-exempt market) 3.40 5.09 3.30

FTSE Three-Month U.S. Treasury Bill Index 0.06 1.20 1.13

CPI

Consumer Price Index 5.25% 2.76% 2.58%

Your Fund’s Performance at a Glance

1

For the 12 months ended August 31,2021, Vanguard International Growth Fundreturned 29.89% for Investor Shares and30.01% for Admiral Shares, outperformingthe 24.87% return of its benchmark. Yourfund is managed by two independentadvisors, a strategy that enhances thefund’s diversification by providingexposure to distinct yet complementaryinvestment approaches. It is notuncommon for advisors to have differentviews about individual securities or thebroader investment environment.

The table on page 5 presents theadvisors, the amount and percentage offund assets each manages, and briefdescriptions of their investmentstrategies. The advisors have alsoprepared a discussion of the investmentenvironment that existed during the fiscalyear and of how the portfolio’s positioningreflects this assessment. Thesecomments were prepared onSeptember 17, 2021.

Baillie Gifford Overseas Ltd.

Portfolio Managers:

James K. Anderson, Head of GlobalEquities

Lawrence Burns, Deputy ChairInternational Growth PortfolioConstruction Group

Thomas Coutts, Chair InternationalGrowth Portfolio Construction Group

Most companies are a distraction fromthe task of making money for clients. Infact, research shows that over the longterm, a mere one percent of companiesaccount for all the global net wealthcreation. We believe success lies in theability to identify exceptional companies,and the patience and conviction to holdthem for the long term through inevitableperiods of volatility.

The pandemic’s impact on the world couldscarcely have been imagined, let alonemodeled. We have seen great difficultyand unimaginable loss. However, we havealso seen an acceleration ofchange—rapid adaptation of consumerscoupled with a new operating landscapefor companies. The pandemic hasspawned an era in which some of thedisruptive companies we seek out havebeen able to thrive. We believe thepandemic accelerated the pace oftransformative trends that we hadexpected would take longer to take hold,such as digitalization and the evolution ofe-commerce. As we emerge from thepandemic, we expect newly formedhabits, demands, and ways of working to“stick.”

Many of our strong contributors werecompanies involved in digitalinfrastructure, e-commerce, and healthinnovation. ASML Holding, a Dutchmanufacturer of semiconductor machines,contributed significantly. Its extremeultraviolet (EUV) lithography technologyenables digital transformation through theprogression of Moore’s law (the axiomthat the number of transistors in a dense

Advisors’ Report

2

integrated circuit doubles about every twoyears). The company’s investment indeveloping their commercially provensystem should pay dividends as EUVlithography helps develop the next waveof chips for AI, autonomous driving, and5G, to name but a few. With innovationand new technology drivingunprecedented global demand forsemi-conductors, we remain optimisticabout ASML‘s long-term outlook.

Payment services company Adyenenables online payment processing to beseamless, regardless of geography ormeans of payment. Its clients includemany of the large internet ande-commerce platforms. As e-commercecontinues to grow and proliferateworldwide and society becomes evermore “cashless,” we expect to see Adyengo from strength to strength.

Another standout performer wasModerna, a leading player in the field ofmessenger RNA (mRNA) therapeutics.This is a new class of medicines thatleverage the body's naturalprotein-production apparatus to treatdiseases. The technology platform ofmRNA is such that it has potentialapplications across several disease areas.We increasingly believe that Moore's lawand reducing costs in genomicsequencing are combining in a virtuouscircle. The recent success of Moderna'sCOVID-19 vaccine bodes well for futureapplications and is cause for optimism.

Chinese holdings featured prominentlyamong the portfolio’s detractors, includingour holdings in Alibaba and TAL Education

Group. These companies have sufferedfrom negative market sentiment amid anincreasingly complex and fast-evolvingregulatory environment. Despite thesechallenges, several Chinese holdings haveshown exceptional operationalperformance.

As the world emerges from thepandemic, the adaptors and disruptors ofthe last 12 months have continued to gofrom strength to strength. Sectors of theeconomy previously resistant to changehave opened up and adapted. Newpurchases and sales over the year haveseen us pivot away from Amazon andSoftBank Group and take positions in FullTruck Alliance, an online marketplaceconnecting truckers and shippers in China,and Oatly Group, one of the leadingproducers of plant-based dairyalternatives. We also sold our holdings inmanufacturers Pigeon and EssilorLuxotica,and added Taiwan SemiconductorManufacturing Company, the world’sleading semiconductor foundry, to ourportfolio. We believe demand forsemiconductors will only increase asdigitalization takes hold across more andmore sectors.

Schroder Investment Management

North America Inc.

Portfolio Managers:

James Gautrey, CFA

Simon Webber, CFA

3

International equities posted strong gainsover the period, with the ongoingCOVID-19 vaccine rollouts and fiscalstimulus measures helping to offsetgrowing concerns about rising inflationand uncertainty about the progress of therecovery. A strong corporate earningsrecovery was also supportive of equities,but concerns began to emerge thatmanufacturers’ margins may bechallenged by supply chain disruptions andinflationary pressures. Technology,financials, materials, and industrialsstocks were among the market leaders,while the more defensive sectors lagged.

Our strong stock selection withintechnology, consumer staples, andcommunication services helped offsetweaker selection within consumerdiscretionary and an underweightexposure to materials. Oursemiconductor-exposed names, includingTaiwan Semiconductor ManufacturingCompany and ASML Holding, continuedto perform well amid excellent underlyingindustry conditions, as a combination oftight supply and rebounding demandtranslated into pricing power.

Multinational banking group Banco BilbaoVizcaya Argentaria (BBVA) was among ourtop performers as they navigated thepandemic recession with much bettercredit losses than the market feared.BBVA’s disposal of its U.S. business in2020 further strengthened the bank’scapital position and provided goodoptionality to build scale and profitability incore markets as well as return someexcess capital to shareholders.

Tencent and Alibaba were among thelarger detractors during the period amidregulatory concerns in China and anincreasingly competitive environment. Thecore business for both companies hasexceptionally strong competitiveadvantages, but there is no doubt thatcomplying with the many regulatorychanges across the technology andinternet industries in China will affect boththe profitability of these companies andtheir near-term ability to grow. Werecognize the increased risks and haveadjusted our position sizes and valuationmodels accordingly.

The global economy’s recovery has beenimpressive in both speed and magnitude.Progress in the roll-out of COVID-19vaccines has been instrumental in thisregard, buoying confidence and providinga platform for recovery in both industrialactivity and personal consumption.Stimulus, in its various guises, has been apowerful economic support, and thedeployments of the European recoveryfund and the American Jobs Plan this yeardemonstrate the continued role of suchsupport in sustaining governmenteconomic activity and strategicdevelopment. These programs will providetargeted investment in areas such astransportation, digital infrastructure, andclimate change initiatives over the nextfew years while also supplementinggrowth and job creation.

One notable feature of the recovery hasbeen the rising specter of inflation, andthere is growing evidence that rising inputcosts are pressuring profit margins across

4

a range of manufactured goods andservices. While some of these pressuresare undoubtedly transitory, reflecting laborshortages, supply-chain bottlenecks, andtransportation, for example, the concern isthat rising inflationary expectations couldbecome self-fulfilling. The short-termeffects are already affecting operatingmargins. We are paying particularattention to companies with pricing powerthat can pass through rising costs.

After an incredibly strong 12-monthrecovery, valuations in some parts of theequity market look stretched, particularly

among the small group of organicgrowers. We therefore have focused onfinding reasonably priced stocks withclear growth drivers that are not fullyappreciated by the market. One exampleof this is a recent purchase ofAstraZeneca. In addition to making astrong contribution to the COVID-19vaccine effort, AstraZeneca has developeda very strong pipeline of new oncologytreatments that we expect to acceleratethe company’s growth well above marketexpectations.

Fund Assets Managed

Investment Advisor % $ Million Investment Strategy

Baillie Gifford Overseas Ltd. 69 50,644 The advisor seeks stocks that can generateabove-average growth in earnings and cash flow,producing a bottom-up, stock-driven approach tocountry and asset allocation. An in-depth view oneach company is measured against the consensusview, leading to discrepancies and potentialopportunities to add value.

Schroder InvestmentManagement North AmericaInc.

30 22,215 Equity analysts located around the world and aninternational team of global sector specialists helpto identify reasonably priced companies with stronggrowth prospects and a sustainable competitiveadvantage.

Cash Investments 1 730 These short-term reserves are invested byVanguard in equity index products to simulateinvestment in stocks. Each advisor may alsomaintain a modest cash position.

5

As a shareholder of the fund, you incur ongoing costs, which include costs for portfoliomanagement, administrative services, and shareholder reports (like this one), among others.Operating expenses, which are deducted from a fund’s gross income, directly reduce theinvestment return of the fund.

A fund’s expenses are expressed as a percentage of its average net assets. This figure is knownas the expense ratio. The following examples are intended to help you understand the ongoingcosts (in dollars) of investing in your fund and to compare these costs with those of other mutualfunds. The examples are based on an investment of $1,000 made at the beginning of the periodshown 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 youpaid 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 whostarted with $1,000 in the fund. You may use the information here, together with the amount youinvested, 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 valuedivided by $1,000 = 8.6), then multiply the result by the number given for your fund under theheading ”Expenses Paid During Period.“

• Based on hypothetical 5% yearly return. This section is intended to help you compare yourfund‘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 usedis not the fund’s actual return—the results do not apply to your investment. The example is usefulin making comparisons because the Securities and Exchange Commission requires all mutualfunds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparingthis hypothetical example with the hypothetical examples that appear in shareholder reports ofother 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 service feesdescribed in the fund prospectus. If such fees were applied to your account, your costs would behigher. Your fund does not carry a “sales load.”

The calculations assume no shares were bought or sold during the period. Your actual costs mayhave been higher or lower, depending on the amount of your investment and the timing of anypurchases or redemptions.

You can find more information about the fund’s expenses, including annual expense ratios, in theFinancial Statements section of this report. For additional information on operating expenses andother shareholder costs, please refer to your fund’s current prospectus.

About Your Fund’s Expenses

6

Six Months Ended August 31, 2021Beginning

Account Value2/28/2021

EndingAccount Value

8/31/2021

ExpensesPaid During

Period

Based on Actual Fund Return

International Growth Fund

Investor Shares $1,000.00 $ 1,057.20 $2.23

Admiral™ Shares 1,000.00 1,057.80 1.66

Based on Hypothetical 5% Yearly Return


Investor Shares $1,000.00 $1,023.04 $2.19

Admiral Shares 1,000.00 1,023.59 1.63

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 0.43% for Investor Shares and 0.32% for Admiral 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 (184/365).

7

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 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 reflecttaxes that a shareholder would pay on fund distributions or on the sale of fund shares.

Cumulative Performance: August 31, 2011, Through August 31, 2021

Initial Investment of $10,000$39,000

7,000

36,369

2021202020192018201720162015201420132012

Average Annual Total ReturnsPeriods Ended August 31, 2021

OneYear

FiveYears

TenYears

Final Valueof a $10,000Investment

International Growth Fund Investor Shares 29.89% 22.09% 13.78% $36,369 MSCI All Country World Index ex USA 24.87 9.92 6.57 18,889

OneYear

FiveYears

TenYears

Final Valueof a $50,000

Investment

International Growth Fund Admiral Shares 30.01% 22.24% 13.92% $184,103

MSCI All Country World Index ex USA 24.87 9.92 6.57 94,446


Performance Summary

See Financial Highlights for dividend and capital gains information.

8

United States 17.6%

China 14.0

Netherlands 10.6

Germany 8.6

Japan 7.8

France 6.5

United Kingdom 5.5

Switzerland 4.3

Denmark 4.1

Italy 3.4

Taiwan 3.1

Belgium 2.5

Sweden 2.3

Hong Kong 2.3

India 1.3

Canada 1.0

Other 5.1

The table reflects the fund’s investments, except for short-terminvestments and derivatives.


Fund AllocationAs of August 31, 2021

9

The fund files its complete schedule of portfolio holdings with the Securities and ExchangeCommission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports onForm N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website atwww.sec.gov.

Shares

MarketValue•

($000)

Common Stocks (97.6%)

Australia (0.9%)* Afterpay Ltd. 6,372,489 619,849* Xero Ltd. 328,861 36,373

656,222Austria (0.4%) Erste Group Bank

AG 8,138,256 324,954

Belgium (2.5%)1 Umicore SA 14,023,435 922,770* Argenx SE 1,978,464 660,101 UCB SA 2,062,767 235,999

1,818,870Brazil (0.4%) B3 SA - Brasil

Bolsa Balcao 60,924,982 165,780 Raia Drogasil SA 25,537,937 126,238

292,018Canada (1.0%) Canadian National

Railway Co. 3,077,251 361,958 Toronto-Dominion

Bank 5,501,654 357,271

719,229China (13.7%) Tencent Holdings

Ltd. 45,073,200 2,783,847* Alibaba Group

Holding Ltd. 78,622,556 1,646,324*,2 Meituan Class B 49,232,008 1,574,172* NIO Inc. ADR 31,223,162 1,227,382* Alibaba Group

Holding Ltd.ADR 3,026,188 505,343

*,2 Wuxi BiologicsCayman Inc. 31,161,000 482,433

Ping An InsuranceGroup Co. ofChina Ltd.Class H 55,229,000 427,643

* Baidu Inc. ADR 2,041,992 320,634* Pinduoduo Inc.

ADR 2,838,422 283,899 China Mengniu

Dairy Co. Ltd. 43,759,000 263,200* Full Truck Alliance

Co. Ltd. ADR 12,227,700 196,621

Shares

MarketValue•

($000)* JD.com Inc. ADR 1,880,865 147,761* Kingdee

InternationalSoftware GroupCo. Ltd. 36,184,000 131,760

* TAL EducationGroup ADR 15,272,843 81,252

10,072,271Denmark (4.0%)* Genmab A/S 2,548,873 1,207,486 Vestas Wind

Systems A/S 25,641,615 1,034,660 Ambu A/S Class B 13,909,666 439,907 Novozymes A/S

Class B 2,401,809 194,155 Pandora A/S 466,757 55,948

2,932,156France (6.4%) Kering SA 2,862,106 2,279,728 L'Oreal SA 2,633,485 1,235,472 Schneider Electric

SE 4,473,096 799,193 Alstom SA 4,736,054 203,618 Legrand SA 1,623,923 186,319

4,704,330Germany (8.4%)*,1,2 Zalando SE 13,845,793 1,535,149*,1 HelloFresh SE 10,552,945 1,139,379*,2 Delivery Hero SE 7,334,216 1,064,421 Infineon

Technologies AG 9,866,857 420,109 Bayerische

Motoren WerkeAG 4,099,214 389,092

adidas AG 938,291 332,859 Sartorius AG

PreferenceShares 425,236 280,151

Knorr-Bremse AG 1,601,878 192,347*,3 CureVac NV 2,731,786 179,834 Daimler AG

(Registered) 1,978,487 166,895 SAP SE 1,085,866 163,108*,1,3 Jumia Technologies

AG ADR 6,724,836 134,564 GEA Group AG 2,017,952 93,144*,1,3 Home24 SE 2,066,394 41,075


Financial Statements

Schedule of InvestmentsAs of August 31, 2021

10

Shares

MarketValue•

($000)* MorphoSys AG 664,989 38,566

6,170,693Hong Kong (2.2%) AIA Group Ltd. 82,353,400 983,360 Hong Kong

Exchanges &Clearing Ltd. 8,484,843 536,022

BOC Hong KongHoldings Ltd. 40,990,500 124,044

1,643,426India (1.3%) Housing

DevelopmentFinance Corp.Ltd. 11,680,736 446,157

HDFC Bank Ltd. 17,537,153 378,246 Larsen & Toubro

Ltd. 5,398,434 123,335*,4,5 ANI Technologies

Private Ltd. PP(Acquired12/1/15, Cost$51,748) 166,185 23,969

971,707Indonesia (0.2%) Bank Central Asia

Tbk PT 75,212,500 172,644

Israel (0.3%)* Wix.com Ltd. 1,136,985 252,502

Italy (3.3%) Ferrari NV 4,523,102 981,155 EXOR NV 6,881,235 574,125 Intesa Sanpaolo

SPA 116,521,912 329,740 Stellantis NV 13,737,294 274,802* FinecoBank Banca

Fineco SPA 7,772,508 143,186 Stellantis NV

(XNYS) 6,876,542 137,845

2,440,853Japan (7.7%) M3 Inc. 23,314,500 1,563,645 Nidec Corp. 11,414,800 1,303,899 SMC Corp. 1,078,900 690,333 Recruit Holdings

Co. Ltd. 7,182,000 422,892 Sony Group Corp. 4,003,300 413,923 Bridgestone Corp. 6,467,600 297,727 Takeda

PharmaceuticalCo. Ltd. 6,799,300 226,318

MurataManufacturingCo. Ltd. 1,975,100 162,823

Toyota Motor Corp. 1,788,100 155,732 Kubota Corp. 7,174,000 148,227 Sekisui Chemical

Co. Ltd. 7,883,200 134,915 SBI Holdings Inc. 4,470,400 108,304

5,628,738Netherlands (10.4%) ASML Holding NV 5,690,293 4,745,637*,2 Adyen NV 903,347 2,919,687

7,665,324

Shares

MarketValue•

($000)

Norway (0.7%) Equinor ASA 17,587,753 372,757 DNB Bank ASA 6,526,190 137,747

510,504Singapore (0.3%)* Sea Ltd. ADR 730,005 246,975

South Korea (0.8%) Samsung

Electronics Co.Ltd. 5,055,760 333,772

Samsung SDI Co.Ltd. 387,821 264,334

598,106Spain (0.9%) Iberdrola SA

(XMAD) 27,518,841 340,999* Banco Bilbao

VizcayaArgentaria SA 51,362,001 336,164

677,163Sweden (2.3%) Atlas Copco AB

Class A 13,173,653 905,653* Kinnevik AB

Class B 9,975,592 390,855 Assa Abloy AB

Class B 6,860,999 219,557 Svenska

HandelsbankenAB Class A 15,025,956 168,842

1,684,907Switzerland (4.2%) Roche Holding AG 1,838,790 738,376 Nestle SA

(Registered) 5,320,742 671,950 Temenos AG

(Registered) 2,177,560 345,495 Lonza Group AG

(Registered) 346,404 292,963 Alcon Inc. 3,045,812 250,850 Chocoladefabriken

Lindt &Spruengli AGPtg. Ctf. 20,723 243,790

Cie FinanciereRichemont SAClass A(Registered) 1,954,996 215,775

Sika AG(Registered) 488,250 175,920

Straumann HoldingAG (Registered) 71,660 138,464

3,073,583Taiwan (3.0%) Taiwan

SemiconductorManufacturingCo. Ltd. 101,279,000 2,221,579

United Kingdom (5.1%)* Ocado Group plc 28,247,098 782,875 Diageo plc 9,531,987 458,228 AstraZeneca plc 3,887,133 454,575 Royal Dutch Shell

plc Class A(XLON) 20,620,000 410,192


11

Shares

MarketValue•

($000)

Royal Dutch Shellplc Class A 11,500,265 228,439

National Grid plc 17,516,497 226,562 Barclays plc 86,965,269 220,493 GlaxoSmithKline

plc 10,258,066 206,347 Burberry Group plc 7,985,972 204,487 Bunzl plc 5,626,352 203,862 Reckitt Benckiser

Group plc 2,587,848 197,559* Whitbread plc 3,026,963 133,669

3,727,288United States (17.2%)* MercadoLibre Inc. 1,981,391 3,700,148* Moderna Inc. 9,357,573 3,524,904* Illumina Inc. 3,890,075 1,778,387* Tesla Inc. 2,341,180 1,722,453* Spotify Technology

SA 6,198,659 1,452,594* Oatly Group AB

ADR 13,654,735 248,789* Booking Holdings

Inc. 95,268 219,085

12,646,360

Total Common Stocks(Cost $36,145,209) 71,852,402

Preferred Stock (0.3%)*,1,4,5,6 You & Mr. Jones

PP (Acquired9/23/15)(Cost $44,800) 44,800,000 200,032

Shares

MarketValue•

($000)

Temporary Cash Investments (2.2%)

Money Market Fund (2.2%)7,8 Vanguard Market

Liquidity Fund,0.068%(Cost $1,643,057) 16,431,504 1,643,150

Total Investments (100.1%)(Cost $37,833,066) 73,695,584

Other Assets andLiabilities—Net (-0.1%) (106,818)

Net Assets (100%) 73,588,766

Cost is in $000. • See Note A in Notes to Financial Statements.* Non-income-producing security.1 Considered an affiliated company of the fund as the fund owns

more than 5% of the outstanding voting securities of suchcompany.

2 Security exempt from registration under Rule 144A of theSecurities Act of 1933. Such securities may be sold intransactions exempt from registration, normally to qualifiedinstitutional buyers. At August 31, 2021, the aggregate valuewas $7,575,862,000, representing 10.3% of net assets.

3 Includes partial security positions on loan to broker-dealers. Thetotal value of securities on loan is $125,033,000.

4 Restricted securities totaling $224,001,000, representing 0.3%of net assets.

5 Security value determined using significant unobservableinputs.

6 Perpetual security with no stated maturity date.7 Affiliated money market fund available only to Vanguard funds

and certain trusts and accounts managed by Vanguard. Rateshown is the 7-day yield.

8 Collateral of $135,295,000 was received for securities on loan. ADR—American Depositary Receipt.PP—Private Placement.Ptg. Ctf.—Participating Certificates.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

($000)

Expiration

Number ofLong (Short)

ContractsNotionalAmount

Value andUnrealized

Appreciation(Depreciation)

Long Futures Contracts

MSCI EAFE Index September 2021 4,526 532,145 3,492

MSCI Emerging Markets Index September 2021 3,542 230,088 2,122

5,614

See accompanying Notes, which are an integral part of the Financial Statements.


12

($000s, except shares and per-share amounts) Amount

Assets

Investments in Securities, at Value

Unaffiliated Issuers (Cost $34,473,076) 68,079,465

Affiliated Issuers (Cost $3,359,990) 5,616,119

Total Investments in Securities 73,695,584

Investment in Vanguard 2,401

Cash Collateral Pledged—Futures Contracts 40,349

Foreign Currency, at Value (Cost $9,305) 9,278

Receivables for Investment Securities Sold 1,462

Receivables for Accrued Income 90,432

Receivables for Capital Shares Issued 31,908

Variation Margin Receivable—Futures Contracts 2,867

Other Assets 421

Total Assets 73,874,702

Liabilities

Due to Custodian 6,791

Payables for Investment Securities Purchased 46,080

Collateral for Securities on Loan 135,295

Payables to Investment Advisor 30,569

Payables for Capital Shares Redeemed 38,836

Payables to Vanguard 5,283

Deferred Foreign Capital Gains Taxes 23,082

Total Liabilities 285,936

Net Assets 73,588,766

At August 31, 2021, net assets consisted of:

Paid-in Capital 30,227,231

Total Distributable Earnings (Loss) 43,361,535

Net Assets 73,588,766

Investor Shares—Net Assets

Applicable to 206,361,724 outstanding $.001 par value shares ofbeneficial interest (unlimited authorization) 11,246,536

Net Asset Value Per Share—Investor Shares $54.50

Admiral Shares—Net Assets

Applicable to 359,379,126 outstanding $.001 par value shares ofbeneficial interest (unlimited authorization) 62,342,230

Net Asset Value Per Share—Admiral Shares $173.47



Statement of Assets and LiabilitiesAs of August 31, 2021

13

Year EndedAugust 31, 2021

($000)

Investment Income

Income

Dividends—Unaffiliated Issuers1 765,157

Dividends—Affiliated Issuers 7,821

Interest—Unaffiliated Issuers 189

Interest—Affiliated Issuers 792

Securities Lending—Net 21,232

Total Income 795,191

Expenses

Investment Advisory Fees—Note B

Basic Fee 94,660

Performance Adjustment 19,710

The Vanguard Group—Note C

Management and Administrative—Investor Shares 25,856

Management and Administrative—Admiral Shares 80,862

Marketing and Distribution—Investor Shares 682

Marketing and Distribution—Admiral Shares 1,997

Custodian Fees 2,616

Auditing Fees 20

Shareholders’ Reports—Investor Shares 147

Shareholders’ Reports—Admiral Shares 312

Trustees’ Fees and Expenses 60

Total Expenses 226,922

Net Investment Income 568,269

Realized Net Gain (Loss)

Investment Securities Sold—Unaffiliated Issuers 7,603,649

Investment Securities Sold—Affiliated Issuers 28,205

Futures Contracts 165,740

Forward Currency Contracts (520)

Foreign Currencies (4,209)

Realized Net Gain (Loss) 7,792,865

Change in Unrealized Appreciation (Depreciation)

Investment Securities—Unaffiliated Issuers2 7,348,098

Investment Securities—Affiliated Issuers 1,193,528

Futures Contracts (6,821)

Forward Currency Contracts 519

Foreign Currencies (587)

Change in Unrealized Appreciation (Depreciation) 8,534,737

Net Increase (Decrease) in Net Assets Resulting from Operations 16,895,871

1 Dividends are net of foreign withholding taxes of $74,162,000.2 The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $23,082,000. See accompanying Notes, which are an integral part of the Financial Statements.


Statement of Operations

14

Year Ended August 31,

2021($000)

2020($000)

Increase (Decrease) in Net Assets

Operations

Net Investment Income 568,269 338,623

Realized Net Gain (Loss) 7,792,865 1,295,635

Change in Unrealized Appreciation (Depreciation) 8,534,737 17,702,794

Net Increase (Decrease) in Net Assets Resulting from Operations 16,895,871 19,337,052

Distributions

Investor Shares (233,496) (94,219)

Admiral Shares (1,364,844) (424,749)

Total Distributions (1,598,340) (518,968)

Capital Share Transactions

Investor Shares (756,373) (760,869)

Admiral Shares 2,483,624 2,901,570

Net Increase (Decrease) from Capital Share Transactions 1,727,251 2,140,701

Total Increase (Decrease) 17,024,782 20,958,785

Net Assets

Beginning of Period 56,563,984 35,605,199

End of Period 73,588,766 56,563,984



Statement of Changes in Net Assets

15

Investor Shares

For a Share OutstandingThroughout Each Period


2021 2020 2019 2018 2017

Net Asset Value, Beginning of Period $42.94 $28.30 $31.23 $28.38 $22.38

Investment Operations

Net Investment Income1 .374 .238 .342 .381 .240

Net Realized and Unrealized Gain (Loss) onInvestments 12.336 14.791 (1.941) 2.722 6.028

Total from Investment Operations 12.710 15.029 (1.599) 3.103 6.268

Distributions

Dividends from Net Investment Income (.106) (.389) (.403) (.253) (.268)

Distributions from Realized Capital Gains (1.044) — (.928) — —

Total Distributions (1.150) (.389) (1.331) (.253) (.268)

Net Asset Value, End of Period $54.50 $42.94 $28.30 $31.23 $28.38

Total Return2 29.89% 53.60% -4.58% 10.97% 28.43%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $11,247 $9,658 $7,056 $8,074 $7,731

Ratio of Total Expenses to Average Net Assets3 0.43% 0.44% 0.43% 0.45% 0.45%

Ratio of Net Investment Income toAverage Net Assets 0.75% 0.74% 1.23% 1.25% 1.01%

Portfolio Turnover Rate 25% 20% 13% 16% 15%

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 Includes performance-based investment advisory fee increases (decreases) of 0.03%, 0.04%, 0.03%, 0.03%, and 0.03%.



Financial Highlights

16

Admiral Shares

For a Share OutstandingThroughout Each Period


2021 2020 2019 2018 2017

Net Asset Value, Beginning of Period $136.68 $90.05 $99.45 $90.24 $71.19

Investment Operations

Net Investment Income1 1.367 .863 1.203 1.365 .879

Net Realized and Unrealized Gain (Loss) onInvestments 39.246 47.105 (6.230) 8.652 19.127

Total from Investment Operations 40.613 47.968 (5.027) 10.017 20.006

Distributions

Dividends from Net Investment Income (.497) (1.338) (1.418) (.807) (.956)

Distributions from Realized Capital Gains (3.326) — (2.955) — —

Total Distributions (3.823) (1.338) (4.373) (.807) (.956)

Net Asset Value, End of Period $173.47 $136.68 $90.05 $99.45 $90.24

Total Return2 30.01% 53.81% -4.50% 11.14% 28.57%

Ratios/Supplemental Data

Net Assets, End of Period (Millions) $62,342 $46,906 $28,549 $29,170 $23,101

Ratio of Total Expenses toAverage Net Assets3 0.32% 0.33% 0.32% 0.32% 0.32%

Ratio of Net Investment Income toAverage Net Assets 0.86% 0.83% 1.34% 1.38% 1.14%

Portfolio Turnover Rate 25% 20% 13% 16% 15%

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 Includes performance-based investment advisory fee increases (decreases) of 0.03%, 0.04%, 0.03%, 0.03%, and 0.03%.



Financial Highlights

17

Vanguard International Growth Fund is registered under the Investment Company Act of 1940 asan open-end investment company, or mutual fund. The fund invests in securities of foreign issuers,which may subject to investment risks not normally associated with investing in securities of U.S.corporations. The fund offers two classes of shares: Investor Shares and Admiral Shares. Each ofthe share classes has different eligibility and minimum purchase requirements, and is designed fordifferent types of investors.

Market disruptions associated with the COVID-19 pandemic have had a global impact, anduncertainty exists as to the long-term implications. Such disruptions can adversely affect assets ofthe fund and thus fund performance.

A. The following significant accounting policies conform to generally accepted accountingprinciples for U.S. investment companies. The fund consistently follows such policies in preparingits financial statements.

1. Security Valuation: Securities are valued as of the close of trading on the New York StockExchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at thelatest quoted sales prices or official closing prices taken from the primary market in which eachsecurity trades; such securities not traded on the valuation date are valued at the mean of thelatest quoted bid and asked prices. Securities for which market quotations are not readily available,or whose values have been affected by events occurring before the fund’s pricing time but afterthe close of the securities’ primary markets, are valued at their fair values calculated according toprocedures adopted by the board of trustees. These procedures include obtaining quotations froman independent pricing service, monitoring news to identify significant market- or security-specificevents, and evaluating changes in the values of foreign market proxies (for example, ADRs, futurescontracts, or exchange-traded funds), between the time the foreign markets close and the fund’spricing time. When fair-value pricing is employed, the prices of securities used by a fund tocalculate its net asset value may differ from quoted or published prices for the same securities.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 amatrix system (which considers such factors as security prices, yields, maturities, and ratings),both as furnished by independent pricing services.

2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currenciesare translated into U.S. dollars using exchange rates obtained from an independent third party asof the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation(depreciation) on investment securities include the effects of changes in exchange rates since thesecurities were purchased, combined with the effects of changes in security prices. Fluctuations inthe value of other assets and liabilities resulting from changes in exchange rates are recorded asunrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at whichtime they are recorded as realized foreign currency gains (losses).

3. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objectiveof maintaining full exposure to the stock market while maintaining liquidity. The fund may purchaseor sell futures contracts to achieve a desired level of investment, whether to accommodateportfolio turnover or cash flows from capital share transactions. The primary risks associated withthe use of futures contracts are imperfect correlation between changes in market values of stocksheld 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


Notes to Financial Statements

18

counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund tradesfutures contracts on an exchange, monitors the financial strength of its clearing brokers andclearinghouse, and has entered into clearing agreements with its clearing brokers. Theclearinghouse imposes initial margin requirements to secure the fund’s performance and requiresdaily settlement of variation margin representing changes in the market value of each contract. Anysecurities pledged as initial margin for open contracts are noted in the Schedule of Investments.

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of thecontracts are not recorded in the Statement of Assets and Liabilities. Fluctuations in the value ofthe contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and inthe Statement of Operations as unrealized appreciation (depreciation) until the contracts areclosed, when they are recorded as realized gains (losses) on futures contracts.

During the year ended August 31, 2021, the fund’s average investments in long and short futurescontracts represented 1% and 0% of net assets, respectively, based on the average of thenotional amounts at each quarter-end during the period.

4. Forward Currency Contracts: The fund enters into forward currency contracts to protect thevalue of securities and related receivables and payables against changes in future foreign exchangerates. The fund’s risks in using these contracts include movement in the values of the foreigncurrencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligationsunder the contracts. The fund mitigates its counterparty risk by entering into forward currencycontracts only with a diverse group of prequalified counterparties, monitoring their financialstrength, entering into master netting arrangements with its counterparties, and requiring itscounterparties to transfer collateral as security for their performance. In the absence of a default,the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. Themaster netting arrangements provide that, in the event of a counterparty’s default (includingbankruptcy), the fund may terminate the forward currency contracts, determine the net amountowed by either party in accordance with its master netting arrangements, and sell or retain anycollateral held up to the net amount owed to the fund under the master netting arrangements. Theforward currency contracts contain provisions whereby a counterparty may terminate opencontracts if the fund’s net assets decline below a certain level, triggering a payment by the fund ifthe fund is in a net liability position at the time of the termination. The payment amount would bereduced by any collateral the fund has pledged. Any securities pledged as collateral for opencontracts are noted in the Schedule of Investments. The value of collateral received or pledged iscompared daily to the value of the forward currency contracts exposure with each counterparty,and any difference, if in excess of a specified minimum transfer amount, is adjusted and settledwithin two business days.

Forward currency contracts are valued at their quoted daily prices obtained from an independentthird party, adjusted for currency risk based on the expiration date of each contract. The notionalamounts of the contracts are not recorded in the Statement of Assets and Liabilities. Fluctuationsin the value of the contracts are recorded in the Statement of Assets and Liabilities as an asset(liability) and in the Statement of Operations as unrealized appreciation (depreciation) until thecontracts are closed, when they are recorded as realized gains (losses) on forward currencycontracts.

During the year ended August 31, 2021, the fund’s average investment in forward currencycontracts represented less than 1% of net assets, based on the average of the notional amountsat each quarter-end during the period.


19

The fund had no open forward currency contracts at August 31, 2021.

5. Federal Income Taxes: The fund intends to continue to qualify as a regulated investmentcompany and distribute all of its income. The fund’s tax returns are open to examination by therelevant tax authorities until expiration of the applicable statute of limitations, which is generallythree years after the filing of the tax return. Management has analyzed the fund’s tax positionstaken for all open federal and state income tax years, and has concluded that no provision forincome tax is required in the fund’s financial statements.

6. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributionsare determined on a tax basis at the fiscal year-end and may differ from net investment incomeand realized capital gains for financial reporting purposes.

7. Securities Lending: To earn additional income, the fund lends its securities to qualifiedinstitutional borrowers. Security loans are subject to termination by the fund at any time, and arerequired to be secured at all times by collateral in an amount at least equal to the market value ofsecurities loaned. Daily market fluctuations could cause the value of loaned securities to be moreor less than the value of the collateral received. When this occurs, the collateral is adjusted andsettled before the opening of the market on the next business day. The fund further mitigates itscounterparty risk by entering into securities lending transactions only with a diverse group ofprequalified counterparties, monitoring their financial strength, and entering into master securitieslending agreements with its counterparties. The master securities lending agreements providethat, in the event of a counterparty’s default (including bankruptcy), the fund may terminate anyloans with that borrower, determine the net amount owed, and sell or retain the collateral up tothe 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 experiencedelays and costs in recovering the securities loaned. The fund invests cash collateral received inVanguard Market Liquidity Fund, and records a liability in the Statement of Assets and Liabilitiesfor the return of the collateral, during the period the securities are on loan. Collateral investmentsin Vanguard Market Liquidity Fund are subject to market appreciation or depreciation. Securitieslending income represents fees charged to borrowers plus income earned on invested cashcollateral, less expenses associated with the loan. During the term of the loan, the fund is entitledto all distributions made on or in respect of the loaned securities.

8. Credit Facilities and Interfund Lending Program: The fund and certain other funds managed byThe Vanguard Group ("Vanguard") participate in a $4.3 billion committed credit facility provided by asyndicate of lenders pursuant to a credit agreement and an uncommitted credit facility provided byVanguard. Both facilities may be renewed annually. Each fund is individually liable for itsborrowings, if any, under the credit facilities. Borrowings may be utilized for temporary oremergency purposes, subject to the fund’s regulatory and contractual borrowing restrictions. Withrespect to the committed credit facility, the participating funds are charged administrative fees andan annual commitment fee of 0.10% of the undrawn committed amount of the facility; these feesare allocated to the funds based on a method approved by the fund’s board of trustees andincluded in Management and Administrative expenses on the fund’s Statement of Operations. Anyborrowings under either facility bear interest at a rate based upon the higher of the one-monthLondon Interbank Offered Rate (or an acceptable alternate rate, if necessary), federal fundseffective rate, or overnight bank funding rate plus an agreed-upon spread, except that borrowingsunder the uncommitted credit facility may bear interest based upon an alternate rate agreed to bythe fund and Vanguard.


20

In accordance with an exemptive order (the “Order”) from the SEC, the fund may participate in ajoint lending and borrowing program that allows registered open-end Vanguard funds to borrowmoney from and lend money to each other for temporary or emergency purposes (the “InterfundLending Program”), subject to compliance with the terms and conditions of the Order, and to theextent permitted by the fund’s investment objective and investment policies. Interfund loans andborrowings normally extend overnight, but can have a maximum duration of seven days. Loansmay be called on one business day’s notice. The interest rate to be charged is governed by theconditions of the Order and internal procedures adopted by the board of trustees. The board oftrustees is responsible for overseeing the Interfund Lending Program.

For the year ended August 31, 2021, the fund did not utilize the credit facilities or the InterfundLending Program.

9. Other: Dividend income is recorded on the ex-dividend date. Non-cash dividends included inincome, if any, are recorded at the fair value of the securities received. Interest income includesincome distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiumsand discounts on debt securities are amortized and accreted, respectively, to interest income overthe lives of the respective securities, except for premiums on certain callable debt securities thatare amortized to the earliest call date. Security transactions are accounted for on the datesecurities are bought or sold. Costs used to determine realized gains (losses) on the sale ofinvestment securities are those of the specific securities sold.

Taxes on foreign dividends and capital gains have been provided for in accordance with the fund'sunderstanding of the applicable countries' tax rules and rates. Deferred foreign capital gains tax, ifany, is accrued daily based upon net unrealized gains. The fund has filed tax reclaims for previouslywithheld taxes on dividends earned in certain European Union countries. These filings are subjectto various administrative and judicial proceedings within these countries. Such tax reclaimsreceived during the year, if any, are included in dividend income. No other amounts for additionaltax reclaims are reflected in the financial statements due to the uncertainty as to the ultimateresolution of proceedings, the likelihood of receipt of these reclaims, and the potential timing ofpayment.

Each class of shares has equal rights as to assets and earnings, except that each class separatelybears certain class-specific expenses related to maintenance of shareholder accounts (included inManagement and Administrative expenses) and shareholder reporting. Marketing and distributionexpenses are allocated to each class of shares based on a method approved by the board oftrustees. Income, other non-class-specific expenses, and gains and losses on investments areallocated to each class of shares based on its relative net assets.

B. The investment advisory firms Baillie Gifford Overseas Ltd. and Schroder InvestmentManagement North America Inc. each provide investment advisory services to a portion of thefund for a fee calculated at an annual percentage rate of average net assets managed by theadvisor. The basic fees of Baillie Gifford Overseas Ltd. and Schroder Investment ManagementNorth America Inc. are subject to quarterly adjustments based on performance relative to theMSCI All Country World Index ex USA for the preceding three years.

Vanguard manages the cash reserves of the fund as described below.

For the year ended August 31, 2021, the aggregate investment advisory fee paid to all advisorsrepresented an effective annual basic rate of 0.14% of the fund’s average net assets, before a netincrease of $19,710,000 (0.03%) based on performance.


21

C. In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguardand the fund, Vanguard furnishes to the fund investment advisory, corporate management,administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined bythe FSA). These costs of operations are allocated to the fund based on methods and guidelinesapproved by the board of trustees and 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 inVanguard. At August 31, 2021, the fund had contributed to Vanguard capital in the amount of$2,401,000, representing less than 0.01% of the fund’s net assets and 0.96% of Vanguard’s capitalreceived pursuant to the FSA. The fund’s trustees and officers are also directors and employees,respectively, of Vanguard.

D. Various inputs may be used to determine the value of the fund’s investments and derivatives.These inputs are summarized in three broad levels for financial statement purposes. The inputs ormethodologies used to value securities are not necessarily an indication of the risk associated withinvesting 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, interestrates, prepayment speeds, credit risk, etc.).Level 3—Significant unobservable inputs (including the fund’s own assumptions used todetermine the fair value of investments). Any investments and derivatives valued with significantunobservable inputs are noted on the Schedule of Investments.

The following table summarizes the market value of the fund’s investments and derivatives as ofAugust 31, 2021, based on the inputs used to value them:

Level 1($000)

Level 2($000)

Level 3($000)

Total($000)

Investments

Assets

Common Stocks—North and SouthAmerica 13,657,607 — — 13,657,607

Common Stocks—Other 3,576,767 54,594,059 23,969 58,194,795

Preferred Stock — — 200,032 200,032

Temporary Cash Investments 1,643,150 — — 1,643,150

Total 18,877,524 54,594,059 224,001 73,695,584 Derivative Financial Instruments

Assets

Futures Contracts1 5,614 — — 5,614 1 Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of

Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.


22

E. At August 31, 2021, the fair values of derivatives were reflected in the Statement of Assetsand Liabilities as follows:

Statement of Assets and Liabilities

EquityContracts

($000)Total

($000)

Unrealized Appreciation—Futures Contracts1 5,614 5,614

1 Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule ofInvestments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives forthe year ended August 31, 2021, were:

Realized Net Gain (Loss) on Derivatives

EquityContracts

($000)

ForeignExchangeContracts

($000)Total

($000)

Futures Contracts 165,740 — 165,740

Forward Currency Contracts — (520) (520)

Realized Net Gain (Loss) on Derivatives 165,740 (520) 165,220

Change in Unrealized Appreciation (Depreciation) on Derivatives

Futures Contracts (6,821) — (6,821)

Forward Currency Contracts — 519 519

Change in Unrealized Appreciation (Depreciation) on Derivatives (6,821) 519 (6,302)

F. Permanent differences between book-basis and tax-basis components of net assets arereclassified among capital accounts in the financial statements to reflect their tax character. Thesereclassifications have no effect on net assets or net asset value per share. As of period end,permanent differences primarily attributable to the accounting for foreign currency transactions,passive foreign investment companies, distributions in connection with fund share redemptions,and tax expense on capital gains were reclassified between the following accounts:

Amount($000)

Paid-in Capital 490,319

Total Distributable Earnings (Loss) (490,319)

Temporary differences between book-basis and tax-basis components of total distributableearnings (loss) arise when certain items of income, gain, or loss are recognized in different periodsfor financial statement and tax purposes; these differences will reverse at some time in the future.The differences are primarily related to the deferral of losses from wash sales; the recognition ofunrealized gains or losses from certain derivative contracts; the recognition of unrealized gainsfrom passive foreign investment companies; and the classification of securities for tax purposes.


23

As of period end, the tax-basis components of total distributable earnings (loss) are detailed in thetable as follows:

Amount($000)

Undistributed Ordinary Income 966,699

Undistributed Long-Term Gains 6,575,184

Capital Loss Carryforwards —

Qualified Late-Year Losses —

Net Unrealized Gains (Losses) 35,819,652

The tax character of distributions paid was as follows:


2021Amount

($000)

2020Amount

($000)

Ordinary Income* 393,403 518,968

Long-Term Capital Gains 1,204,937 —

Total 1,598,340 518,968 * Includes short-term capital gains, if any.

As of August 31, 2021, gross unrealized appreciation and depreciation for investments andderivatives based on cost for U.S. federal income tax purposes were as follows:

Amount($000)

Tax Cost 37,854,541

Gross Unrealized Appreciation 37,250,196

Gross Unrealized Depreciation (1,409,153)

Net Unrealized Appreciation (Depreciation) 35,841,043

G. During the year ended August 31, 2021, the fund purchased $17,215,707,000 of investmentsecurities and sold $16,487,652,000 of investment securities, other than temporary cashinvestments.

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


2021 2020

Amount($000)

Shares(000)

Amount($000)

Shares(000)

Investor Shares

Issued 2,455,419 48,845 1,336,137 39,787

Issued in Lieu of Cash Distributions 223,098 4,530 90,043 2,857

Redeemed (3,434,890) (71,899) (2,187,049) (67,132)

Net Increase (Decrease)—Investor Shares (756,373) (18,524) (760,869) (24,488)


24


2021 2020

Amount($000)

Shares(000)

Amount($000)

Shares(000)

Admiral Shares

Issued 13,212,176 83,917 7,810,043 74,363

Issued in Lieu of Cash Distributions 1,227,487 7,836 382,469 3,816

Redeemed (11,956,039) (75,557) (5,290,942) (52,026)

Net Increase (Decrease)—Admiral Shares 2,483,624 16,196 2,901,570 26,153

I. Certain of the fund’s investments are in companies that are considered to be affiliatedcompanies of the fund because the fund owns more than 5% of the outstanding voting securitiesof the company or the issuer is another member of The Vanguard Group. Transactions during theperiod in securities of these companies were as follows:

Current Period Transactions

Aug. 31,2020

MarketValue

($000)

Purchasesat Cost($000)

Proceedsfrom

SecuritiesSold

($000)

RealizedNet

Gain(Loss)($000)

Change inUnrealized

App. (Dep.)($000)

Income($000)

Capital GainDistributions

Received($000)

Aug. 31,2021

MarketValue

($000)

HelloFresh SE 543,702 — — — 595,677 — — 1,139,379

Home24 SE 23,358 4,336 — — 13,381 — — 41,075

Jumia Technologies AGADR 61,801 — — — 72,763 — — 134,564

Umicore SA NA1 192,880 45,274 12,501 222,773 7,821 — 922,770

Vanguard MarketLiquidity Fund 1,795,364 NA2 NA2 90 (89) 792 — 1,643,150

You & Mr. Jones PP 143,808 — — — 56,224 — — 200,032

Zalando SE NA1 392,317 22,573 15,614 232,799 — — 1,535,149

Total 2,568,033 28,205 1,193,528 8,613 — 5,616,119

1 Not applicable—at August 31, 2020, the issuer was not an affiliated company of the fund.2 Not applicable—purchases and sales are for temporary cash investment purposes.

J. Management has determined that no events or transactions occurred subsequent toAugust 31, 2021, that would require recognition or disclosure in these financial statements.


25

To the Board of Trustees of Vanguard World Fund and Shareholders of Vanguard InternationalGrowth Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule ofinvestments, of Vanguard International Growth Fund (one of the funds constituting Vanguard WorldFund, referred to hereafter as the "Fund") as of August 31, 2021, the related statement ofoperations for the year ended August 31, 2021, the statement of changes in net assets for each ofthe two years in the period ended August 31, 2021, including the related notes, and the financialhighlights for each of the five years in the period ended August 31, 2021 (collectively referred to asthe "financial statements"). In our opinion, the financial statements present fairly, in all materialrespects, the financial position of the Fund as of August 31, 2021, the results of its operations forthe year then ended, the changes in its net assets for each of the two years in the period endedAugust 31, 2021 and the financial highlights for each of the five years in the period endedAugust 31, 2021 in conformity with accounting principles generally accepted in the United Statesof America.

Basis for Opinion

These financial statements are the responsibility of the Fund's management. Our responsibility isto express an opinion on the Fund's financial statements based on our audits. We are a publicaccounting firm registered with the Public Company Accounting Oversight Board (United States)("PCAOB") and are required to be independent with respect to the Fund in accordance with theU.S. federal securities laws and the applicable rules and regulations of the Securities and ExchangeCommission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of thePCAOB. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement, whether dueto error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of thefinancial statements, whether due to error or fraud, and performing procedures that respond tothose risks. Such procedures included examining, on a test basis, evidence regarding the amountsand disclosures in the financial statements. Our audits also included evaluating the accountingprinciples used and significant estimates made by management, as well as evaluating the overallpresentation of the financial statements. Our procedures included confirmation of securitiesowned as of August 31, 2021 by correspondence with the custodians, transfer agent and brokers;when replies were not received from the transfer agent or brokers, we performed other auditingprocedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLPPhiladelphia, PennsylvaniaOctober 20, 2021

We have served as the auditor of one or more investment companies in The Vanguard Group ofFunds since 1975.

Report of Independent RegisteredPublic Accounting Firm

26

Special 2021 tax information (unaudited) for Vanguard International Growth Fund

This information for the fiscal year ended August 31, 2021, is included pursuant to provisions ofthe Internal Revenue Code.

The fund distributed $1,632,278,000 as capital gain dividends (20% rate gain distributions) toshareholders during the fiscal year.

For nonresident alien shareholders, 100% of short-term capital gain dividends distributed by thefund are qualified short-term capital gains.

The fund distributed $270,487,000 of qualified dividend income to shareholders during the fiscalyear.

The fund designates to shareholders foreign source income of $845,567,000 and foreign taxes paidof $66,253,000. Shareholders will receive more detailed information with their Form 1099-DIV inJanuary 2022 to determine the calendar-year amounts to be included on their 2021 tax returns.

27

Vanguard funds (except for the money market funds) have adopted and implemented a writtenliquidity risk management program (the “Program”) as required by Rule 22e-4 under theInvestment Company Act of 1940. Rule 22e-4 requires that each fund adopt a program that isreasonably designed to assess and manage the fund’s liquidity risk, which is the risk that the fundcould not meet redemption requests without significant dilution of remaining investors’ interestsin the fund.

Assessment and management of a fund’s liquidity risk under the Program take into considerationcertain factors, such as the fund’s investment strategy and the liquidity of its portfolio investmentsduring normal and reasonably foreseeable stressed conditions, its short- and long-term cash-flowprojections during both normal and reasonably foreseeable stressed conditions, and its cash andcash-equivalent holdings and access to other funding sources. As required by the rule, theProgram includes policies and procedures for classification of fund portfolio holdings in fourliquidity categories, maintaining certain levels of highly liquid investments, and limiting holdings ofilliquid investments.

The board of trustees of Vanguard World Fund approved the appointment of liquidity riskmanagement program administrators responsible for administering Vanguard International GrowthFund's Program and for carrying out the specific responsibilities set forth in the Program, includingreporting to the board on at least an annual basis regarding the Program’s operation, its adequacy,and the effectiveness of its implementation for the past year (the “Program AdministratorReport”). The board has reviewed the Program Administrator Report covering the period fromJanuary 1, 2020, through December 31, 2020 (the “Review Period”). The Program AdministratorReport stated that during the Review Period the Program operated and was implementedeffectively to manage the fund’s liquidity risk.

Liquidity Risk Management

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The trustees of your mutual fund are there to see that the fund is operated and managed in yourbest interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees alsoserve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard fundsand provides services to them.

A majority of Vanguard’s board members are independent, meaning that they have no affiliationwith Vanguard or the funds they oversee, apart from the sizable personal investments they havemade as private individuals. The independent board members have distinguished backgrounds inbusiness, academia, and public service. Each of the trustees and executive officers oversees 212Vanguard funds.

Information for each trustee and executive officer of the fund appears below. That information, aswell as the Vanguard fund count, is as of the date on the cover of this fund report. The mailingaddress of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More informationabout the trustees is in the Statement of Additional Information, which can be obtained, withoutcharge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.

Interested Trustee1

Mortimer J. Buckley

Born in 1969. Trustee since January 2018. Principaloccupation(s) during the past five years and otherexperience: chairman of the board (2019–present) ofVanguard and of each of the investment companiesserved by Vanguard; chief executive officer(2018–present) of Vanguard; chief executive officer,president, and trustee (2018–present) of each of theinvestment companies served by Vanguard; presidentand director (2017–present) of Vanguard; andpresident (2018–present) of Vanguard MarketingCorporation. Chief investment officer (2013–2017),managing director (2002–2017), head of the RetailInvestor Group (2006–2012), and chief informationofficer (2001–2006) of Vanguard. Chairman of theboard (2011–2017) and trustee (2009–2017) of theChildren’s Hospital of Philadelphia; and trustee(2018–present) and vice chair (2019–present) of TheShipley School.

Independent Trustees

Emerson U. Fullwood

Born in 1948. Trustee since January 2008. Principaloccupation(s) during the past five years and otherexperience: executive chief staff and marketingofficer for North America and corporate vice president(retired 2008) of Xerox Corporation (documentmanagement products and services). Formerpresident of the Worldwide Channels Group, Latin

America, and Worldwide Customer Service andexecutive chief staff officer of Developing Markets ofXerox. Executive in residence and 2009–2010Distinguished Minett Professor at the RochesterInstitute of Technology. Director of SPX FLOW, Inc.(multi-industry manufacturing). Director of theUniversity of Rochester Medical Center, the MonroeCommunity College Foundation, the United Way ofRochester, North Carolina A&T University, andRoberts Wesleyan College. Trustee of the Universityof Rochester.

Amy Gutmann

Born in 1949. Trustee since June 2006. Principaloccupation(s) during the past five years and otherexperience: president (2004–present) of theUniversity of Pennsylvania. Christopher H. BrowneDistinguished Professor of Political Science, School ofArts and Sciences, and professor of communication,Annenberg School for Communication, withsecondary faculty appointments in the Department ofPhilosophy, School of Arts and Sciences, and at theGraduate School of Education, University ofPennsylvania.

F. Joseph Loughrey

Born in 1949. Trustee since October 2009. Principaloccupation(s) during the past five years and otherexperience: 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. (specializedconsumer services). Director of the V Foundation.

1 Mr. Buckley is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the

Vanguard funds.

The People Who Govern Your Fund

Member of the advisory council for the College ofArts and Letters and chair of the advisory board to theKellogg Institute for International Studies, both at theUniversity of Notre Dame. Chairman of the board ofSaint Anselm College.

Mark Loughridge

Born in 1953. Trustee since March 2012. Principaloccupation(s) during the past five years and otherexperience: senior vice president and chief financialofficer (retired 2013) of IBM (information technologyservices). Fiduciary member of IBM’s RetirementPlan Committee (2004–2013), senior vice presidentand general manager (2002–2004) of IBM GlobalFinancing, vice president and controller (1998–2002)of IBM, and a variety of other prior management rolesat IBM. Member of the Council on Chicago Booth.

Scott C. Malpass

Born in 1962. Trustee since March 2012. Principaloccupation(s) during the past five years and otherexperience: chief investment officer (retired June2020) and vice president (retired June 2020) of theUniversity of Notre Dame. Assistant professor (retiredJune 2020) of finance at the Mendoza College ofBusiness, University of Notre Dame, and member ofthe Notre Dame 403(b) Investment Committee.Member of the board of Catholic InvestmentServices, Inc. (investment advisors) and the board ofsuperintendence of the Institute for the Works ofReligion.

Deanna Mulligan

Born in 1963. Trustee since January 2018. Principaloccupation(s) during the past five years and otherexperience: board chair (2020), chief executive officer(2011–2020), and president (2010–2019) of TheGuardian Life Insurance Company of America. Chiefoperating officer (2010–2011) and executive vicepresident (2008–2010) of Individual Life and Disabilityof the Guardian Life Insurance Company of America.Member of the board of the Economic Club of NewYork. Trustee of the Partnership for New York City(business leadership), Chief Executives for CorporatePurpose, NewYork-Presbyterian Hospital, and theBruce Museum (arts and science). Member of theAdvisory Council for the Stanford Graduate School ofBusiness.

André F. Perold

Born in 1952. Trustee since December 2004. Principaloccupation(s) during the past five years and otherexperience: George Gund Professor of Finance andBanking, Emeritus at the Harvard Business School(retired 2011). Chief investment officer andco-managing partner of HighVista Strategies (privateinvestment firm). Member of the board

(2018–present) of RIT Capital Partners (investmentfirm). Member of the investment committee ofPartners Health Care System.

Sarah Bloom Raskin

Born in 1961. Trustee since January 2018. Principaloccupation(s) during the past five years and otherexperience: deputy secretary (2014–2017) of theUnited States Department of the Treasury. Governor(2010–2014) of the Federal Reserve Board.Commissioner (2007–2010) of financial regulation forthe State of Maryland. Professor (2020–present),Distinguished Fellow of the Global Financial MarketsCenter (2020–present), and Rubenstein Fellow(2017–2020) at Duke University. Trustee(2017–present) of Amherst College and member ofAmherst College Investment Committee(2019–present). Member of the Regenerative CrisisResponse Committee (2020–present).

David A. Thomas

Born in 1956. Trustee since July 2021. Principaloccupation(s) during the past five years and otherexperience: president of Morehouse College(2018–present). Professor of business administration,emeritus at Harvard University (2017–2018). Dean(2011–2016) and professor of management(2016–2017) at the Georgetown UniversityMcDonough School of Business. Director of DTEEnergy Company (2013–present). Trustee of CommonFund (2019–present).

Peter F. Volanakis

Born in 1955. Trustee since July 2009. Principaloccupation(s) during the past five years and otherexperience: president and chief operating officer(retired 2010) of Corning Incorporated(communications equipment) and director of CorningIncorporated (2000–2010) and Dow Corning(2001–2010). Director (2012) of SPX Corporation(multi-industry manufacturing). Overseer of the AmosTuck School of Business Administration, DartmouthCollege (2001–2013). Chairman of the board oftrustees of Colby-Sawyer College. Member of theBMW Group Mobility Council.

Executive Officers

John Bendl

Born in 1970. Principal occupation(s) during the pastfive years and other experience: principal ofVanguard. Chief financial officer (2019–present) ofeach of the investment companies served byVanguard. Chief accounting officer, treasurer, andcontroller of Vanguard (2017–present). Partner(2003–2016) at KPMG (audit, tax, and advisoryservices).

Christine M. Buchanan

Born in 1970. Principal occupation(s) during the pastfive years and other experience: principal ofVanguard. Treasurer (2017–present) of each of theinvestment companies served by Vanguard. Partner(2005–2017) at KPMG (audit, tax, and advisoryservices).

David Cermak

Born in 1960. Principal occupation(s) during the pastfive years and other experience: principal ofVanguard. Finance director (2019–present) of each ofthe investment companies served by Vanguard.Managing director and head (2017–present) ofVanguard Investments Singapore. Managing directorand head (2017–2019) of Vanguard Investments HongKong. Representative director and head (2014–2017)of Vanguard Investments Japan.

John Galloway

Born in 1973. Principal occupation(s) during the pastfive years and other experience: principal ofVanguard. Investment stewardship officer (September2020–present) of each of the investment companiesserved by Vanguard. Head of Investor Advocacy(February 2020–present) and head of MarketingStrategy and Planning (2017–2020) at Vanguard.Deputy assistant to the President of theUnited States (2015).

Peter Mahoney

Born in 1974. Principal occupation(s) during the pastfive years and other experience: principal ofVanguard. Controller (2015–present) of each of theinvestment companies served by Vanguard. Head ofInternational Fund Services (2008–2014) at Vanguard.

Anne E. Robinson

Born in 1970. Principal occupation(s) during the pastfive years and other experience: general counsel(2016–present) of Vanguard. Secretary (2016–present)of Vanguard and of each of the investmentcompanies served by Vanguard. Managing director(2016–present) of Vanguard. Managing director andgeneral counsel of Global Cards and ConsumerServices (2014–2016) at Citigroup. Counsel(2003–2014) at American Express.

Michael Rollings

Born in 1963. Principal occupation(s) during the pastfive years and other experience: finance director(2017–present) and treasurer (2017) of each of theinvestment companies served by Vanguard.Managing director (2016–present) of Vanguard. Chieffinancial 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.

John E. Schadl

Born in 1972. Principal occupation(s) during the pastfive years and other experience: principal ofVanguard. Chief compliance officer (2019–present) ofVanguard and of each of the investment companiesserved by Vanguard. Assistant vice president(2019–present) of Vanguard Marketing Corporation.

Vanguard Senior Management Team

Matthew Benchener Chris D. Mclsaac

Joseph Brennan Thomas M. Rampulla

Mortimer J. Buckley Karin A. Risi

Gregory Davis Anne E. Robinson

John James Michael Rollings

John T. Marcante Lauren Valente

Connect with Vanguard® > vanguard.com

Fund Information > 800-662-7447

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Institutional Investor Services > 800-523-1036

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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 Morningstar,Inc., unless otherwise 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, www.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 www.sec.gov.

You can review information about your fund on the SEC’swebsite, and you can receive copies of this information,for a fee, by sending a request via email addressed [email protected].

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Q810 102021

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Vanguard International Growth Fund