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See the inside front cover for important information about accessto your fund’s annual and semiannual shareholder reports.
Annual Report | September 30, 2019
Vanguard Target Retirement Funds
Vanguard Target Retirement Income Fund
Vanguard Target Retirement 2015 Fund
Vanguard Target Retirement 2020 Fund
Vanguard Target Retirement 2025 Fund
Vanguard Target Retirement 2030 Fund
Vanguard Target Retirement 2035 Fund
Contents
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promisesor advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of thisreport. Of course, the risks of investing in your fund are spelled out in the prospectus.
Important information about access to shareholder reports
Beginning on January 1, 2021, as permitted by regulations adopted by theSecurities and Exchange Commission, paper copies of your fund’s annual andsemiannual shareholder reports will no longer be sent to you by mail, unless youspecifically request them. Instead, you will be notified by mail each time a reportis posted on the website and will be provided with a link to access the report.
If you have already elected to receive shareholder reports electronically, you will notbe affected by this change and do not need to take any action. You may elect toreceive shareholder reports and other communications from the fund electronicallyby contacting your financial intermediary (such as a broker-dealer or bank) or, if youinvest directly with the fund, by calling Vanguard at one of the phone numbers onthe back cover of this report or by logging on to vanguard.com.
You may elect to receive paper copies of all future shareholder reports freeof charge. If you invest through a financial intermediary, you can contact theintermediary to request that you continue to receive paper copies. If you investdirectly with the fund, you can call Vanguard at one of the phone numbers on theback cover of this report or log on to vanguard.com. Your election to receive papercopies will apply to all the funds you hold through an intermediary or directly withVanguard.
A Note From Our Chairman. . . . . . . . . . . . . . . . . . . . . . . . . . 1
Your Fund’s Performance at a Glance. . . . . . . . . . . . . . . . . . 2
About Your Fund’s Expenses. . . . . . . . . . . . . . . . . . . . . . . . . 3
Target Retirement Income Fund. . . . . . . . . . . . . . . . . . . . . . 5
Target Retirement 2015 Fund. . . . . . . . . . . . . . . . . . . . . . . 16
Target Retirement 2020 Fund. . . . . . . . . . . . . . . . . . . . . . . 27
Target Retirement 2025 Fund. . . . . . . . . . . . . . . . . . . . . . . 38
Target Retirement 2030 Fund. . . . . . . . . . . . . . . . . . . . . . . 49
Target Retirement 2035 Fund. . . . . . . . . . . . . . . . . . . . . . . 60
Dear Shareholder,
Recent volatility in financial markets—affecting stocks, bonds, and commodities— has been a good reminder of the wise old adage, “Never keep all your eggs in one basket.” Maintaining balance and diversification in your investment portfolio can help to both limit risk and set you up for long-term success.
It’s understandable why some investors might become complacent after a long market run-up like the one that lifted stock prices, especially U.S. stock prices, in the years following the global financial crisis. But failing to rebalance regularly can leave a portfolio with a much different mix of assets than intended and, often, more risk than intended.
Balance across and diversification within asset classes are powerful tools for managing risk and achieving your investment goals. A portfolio’s allocation will determine a large portion of its long- term return and also the majority of its volatility risk. A well-diversified portfolio is less vulnerable to significant swings in the performance of any one segment of the asset classes in which it invests.
Balance and diversification will never eliminate the risk of loss, nor will they guarantee positive returns in a declining market. But they should reduce the chance that you’ll suffer disproportionate losses in one particular high-flying asset class or sector when it comes back to earth. And exposure to all key market components should give you at least some participation in the sectors that are performing best at any given time.
Vanguard is committed to helping you achieve balance and diversification in your portfolios to help meet your invest-ment goals. We thank you for your continued loyalty.
Sincerely,
Mortimer J. Buckley Chairman and Chief Executive Officer October 14, 2019
A Note From Our Chairman
Tim BuckleyChairman and Chief Executive Officer
1
• For the 12 months ended September 30, 2019, the six Vanguard Target Retirement
Funds covered in this report recorded returns ranging from 3.37% for the Target
Retirement 2035 Fund to 6.75% for the Target Retirement Income Fund. (The funds
with target dates of 2040 through 2065 are covered in a separate report.) The funds
with a greater allocation to bonds did best.
• Each fund performed in line with its composite benchmark after expenses. The
Target Retirement Funds invest all of their assets in Vanguard index funds that seek
to match the performance of broad stock and bond market indexes.
• Worries about the pace of global economic growth and central bank plans to loosen
monetary policies virtually worldwide encouraged investment in bonds, sending their
yields lower and their prices markedly higher. Broad measures of both the U.S. and
non-U.S. investment-grade bond markets returned more than 10% during the funds’
fiscal year. Stocks, in contrast, cooled. U.S. shares gained less than 3%, while non-U.S.
shares returned roughly –1% in U.S. dollars.
• Vanguard Target Retirement Funds are designed to reach an allocation of 70% bonds
and 30% stocks within seven years after their target dates.
• For the ten years ended September 30, the funds’ average annual returns ranged
from 5.76% for the Target Retirement Income Fund to 9.35% for the Target Retirement
2035 Fund.
Your Fund’s Performance at a Glance
Market Barometer Average Annual Total Returns
Periods Ended September 30, 2019
One Year Three Years Five Years
Stocks
Russell 1000 Index (Large-caps) 3.87% 13.19% 10.62%
Russell 2000 Index (Small-caps) -8.89 8.23 8.19
Russell 3000 Index (Broad U.S. market) 2.92 12.83 10.44
FTSE All-World ex US Index (International) -1.12 6.46 3.24
Bonds
Bloomberg Barclays U.S. Aggregate Bond Index
(Broad taxable market) 10.30% 2.92% 3.38%
Bloomberg Barclays Municipal Bond Index
(Broad tax-exempt market) 8.55 3.19 3.66
FTSE Three-Month U.S. Treasury Bill Index 2.36 1.52 0.95
CPI
Consumer Price Index 1.71% 2.07% 1.53%
2
About Your Fund’s Expenses
3
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 typical fund’s expenses are expressed as a percentage of its average net assets. The Target Retirement Funds have no direct expenses, but each fund bears its proportionate share of the costs for the underlying funds in which it invests. These indirect expenses make up the acquired fund fees and expenses, also expressed as a percentage of average net assets.
The following examples are intended to help you understand the ongoing cost (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 costs were calculated using the acquired fund fees and expenses for each Target Retirement Fund.
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.
4
Six Months Ended September 30, 2019
BeginningAccount Value
3/31/2019
EndingAccount Value
9/30/2019
ExpensesPaid During
Period
Based on Actual Fund Return
Target Retirement Income Fund $1,000.00 $1,045.36 $0.62
Target Retirement 2015 Fund $1,000.00 $1,044.72 $0.67
Target Retirement 2020 Fund $1,000.00 $1,044.38 $0.67
Target Retirement 2025 Fund $1,000.00 $1,044.84 $0.67
Target Retirement 2030 Fund $1,000.00 $1,043.25 $0.72
Target Retirement 2035 Fund $1,000.00 $1,041.47 $0.72
Based on Hypothetical 5% Yearly Return
Target Retirement Income Fund $1,000.00 $1,024.47 $0.61
Target Retirement 2015 Fund $1,000.00 $1,024.42 $0.66
Target Retirement 2020 Fund $1,000.00 $1,024.42 $0.66
Target Retirement 2025 Fund $1,000.00 $1,024.42 $0.66
Target Retirement 2030 Fund $1,000.00 $1,024.37 $0.71
Target Retirement 2035 Fund $1,000.00 $1,024.37 $0.71
The calculations are based on the acquired fund fees and expenses for the most recent six-month period. The funds’ annualized expensefigures for that period are (in order as listed from top to bottom above) 0.12%, 0.13%, 0.13%, 0.13%, 0.14%, and 0.14%. The dollaramounts shown as ”Expenses Paid” are equal to the annualized expense figures for the underlying funds multiplied by the averageaccount value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days inthe most recent 12-month period (183/365).
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher thanthe performance data cited. For performance data current to the most recent month-end, visitour website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Performance Summary
See Financial Highlights for dividend and capital gains information.
Target Retirement Income Fund
5
Cumulative Performance: September 30, 2009, Through September 30, 2019Initial Investment of $10,000
2019201820172016201520142013201220112010
$22,000
7,000
17,507
Average Annual Total ReturnsPeriods Ended September 30, 2019
OneYear
FiveYears
TenYears
Final Valueof a $10,000Investment
Target Retirement Income Fund 6.75% 4.57% 5.76% $17,507
• • • • • • • • Target Income Composite Index 6.83 4.73 5.90 17,741
________ Bloomberg Barclays U.S. AggregateBond Index 10.30 3.38 3.75 14,448
Target Income Composite Index: Derived by applying the fund’s target asset allocation to the results of the following benchmarks: forinternational stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index throughJune 2, 2013, and the FTSE Global All Cap ex US Index thereafter; for emerging-market stocks, the Select Emerging Markets Index throughAugust 23, 2006, the MSCI Emerging Markets Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013,and the FTSE Global All Cap ex US Index thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Bond Index through December31, 2009, and the Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter, as well as the Bloomberg Barclays U.S. TreasuryInflation-Protected Securities Index through June 2, 2013, and the Bloomberg Barclays U.S. Treasury Inflation-Protected Securities (TIPS)0–5 Year Index thereafter; for short-term reserves, the Citigroup Three-Month Treasury Bill Index through June 2, 2013; for internationalbonds, the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged beginning June 3, 2013; and for U.S.stocks, the Dow Jones U.S. Total Stock Market Index (formerly known as the Dow Jones Wilshire 5000 Index) through April 22, 2005, theMSCI US Broad Market Index through June 2, 2013, and the CRSP US Total Market Index thereafter. International stock benchmark returnsare adjusted for withholding taxes.
Underlying Vanguard FundsAs of September 30, 2019
Target Retirement Income Fund
6
Vanguard Total Bond Market II IndexFund Investor Shares 37.1%
Vanguard Total Stock Market Index FundInvestor Shares 18.3
Vanguard Short-Term Inflation-ProtectedSecurities Index Fund Investor Shares 16.6
Vanguard Total International Bond IndexFund Investor Shares 16.1
Vanguard Total International Stock IndexFund Investor Shares 11.9
Investment Companies (100.0%)
U.S. Stock Fund (18.3%)
Vanguard Total Stock Market Index Fund Investor Shares 42,249,458 3,104,490
International Stock Fund (11.9%)
Vanguard Total International Stock Index Fund Investor Shares 121,435,524 2,012,186
U.S. Bond Funds (53.7%) 1 Vanguard Total Bond Market II Index Fund Investor Shares 568,891,400 6,303,317
Vanguard Short-Term Inflation-Protected Securities Index Fund
Investor Shares 114,851,283 2,821,896
9,125,213
International Bond Fund (16.1%)
Vanguard Total International Bond Index Fund Investor Shares 232,834,156 2,738,130
Total Investment Companies (Cost $13,906,300) 16,980,019
Temporary Cash Investment (0.0%)
Money Market Fund (0.0%)1 Vanguard Market Liquidity Fund, 2.098% (Cost $4,215) 42,144 4,215
Total Investments (100.0%) (Cost $13,910,515) 16,984,234
Other Assets and Liabilities (0.0%)
Other Assets 33,397
Liabilities (34,123)
(726)
Net Assets (100%)
Applicable to 1,226,585,490 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) 16,983,508
Net Asset Value Per Share $13.85
Market
Value•
Shares ($000)
Target Retirement Income Fund
Statement of Net AssetsAs of September 30, 2019
Financial Statements
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
www.sec.gov.
7
Target Retirement Income Fund
Statement of Assets and Liabilities
Assets
Investments in Securities, at Value—Affiliated Funds 16,984,234
Receivables for Investment Securities Sold 5,378
Receivables for Accrued Income 15,781
Receivables for Capital Shares Issued 12,238
Total Assets 17,017,631
Liabilities
Payables for Investment Securities Purchased 15,780
Payables for Capital Shares Redeemed 13,696
Payables for Distributions 4,647
Total Liabilities 34,123
Net Assets 16,983,508
At September 30, 2019, net assets consisted of:
Amount
($000)
Paid-in Capital 13,886,283
Total Distributable Earnings (Loss) 3,097,225
Net Assets 16,983,508
• See Note A in Notes to Financial Statements.
1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield.
Amount
($000)
See accompanying Notes, which are an integral part of the Financial Statements.
8
Year Ended September 30, 2019
($000)
Investment Income
Income
Income Distributions Received from Affiliated Funds 415,089
Net Investment Income—Note B 415,089
Realized Net Gain (Loss)
Capital Gain Distributions Received from Affiliated Funds —
Affiliated Funds Sold 22,491
Realized Net Gain (Loss) 22,491
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds 626,217
Net Increase (Decrease) in Net Assets Resulting from Operations 1,063,797
Statement of Operations
Target Retirement Income Fund
See accompanying Notes, which are an integral part of the Financial Statements.
9
Statement of Changes in Net Assets
Target Retirement Income Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Year Ended September 30,
2019 2018
($000) ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income 415,089 413,947
Realized Net Gain (Loss) 22,491 261,296
Change in Unrealized Appreciation (Depreciation) 626,217 (139,267)
Net Increase (Decrease) in Net Assets Resulting from Operations 1,063,797 535,976
Distributions
Net Investment Income (425,968) (403,170)
Realized Capital Gain1 (230,195) (68,416)
Total Distributions (656,163) (471,586)
Capital Share Transactions
Issued 2,449,733 2,962,286
Issued in Lieu of Cash Distributions 627,398 451,985
Redeemed (3,114,349) (3,510,565)
Net Increase (Decrease) from Capital Share Transactions (37,218) (96,294)
Total Increase (Decrease) 370,416 (31,904)
Net Assets
Beginning of Period 16,613,092 16,644,996
End of Period 16,983,508 16,613,092
1 Includes fiscal 2019 and 2018 short-term gain distributions totaling $5,284,000 and $7,271,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
10
For a Share Outstanding Year Ended September 30,
Throughout Each Period 2019 2018 2017 2016 2015
Net Asset Value, Beginning of Period $13.52 $13.46 $13.08 $12.59 $12.84
Investment Operations
Net Investment Income .3411 .3341 .2501 .229 .238
Capital Gain Distributions Received — .0011 .0041 .007 .015
Net Realized and Unrealized Gain (Loss)
on Investments .533 .107 .422 .692 (.225)
Total from Investment Operations .874 .442 .676 .928 .028
Distributions
Dividends from Net Investment Income (.352) (.327) (.254) (.227) (.236)
Distributions from Realized Capital Gains (.192) (.055) (.042) (.211) (.042)
Total Distributions (.544) (.382) (.296) (.438) (.278)
Net Asset Value, End of Period $13.85 $13.52 $13.46 $13.08 $12.59
Total Return2 6.75% 3.31% 5.26% 7.54% 0.18%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $16,984 $16,613 $16,645 $10,790 $10,633
Ratio of Total Expenses to Average Net Assets — — — — —
Acquired Fund Fees and Expenses 0.12% 0.12% 0.13% 0.13% 0.14%
Ratio of Net Investment Income to
Average Net Assets 2.54% 2.47% 1.90% 1.78% 1.83%
Portfolio Turnover Rate 10% 6% 8% 11% 14%
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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Target Retirement Income Fund
11
Notes to Financial Statements
Target Retirement Income Fund
Vanguard Target Retirement Income Fund is registered under the Investment Company Act of
1940 as an open-end investment company, or mutual fund. The fund follows a balanced investment
strategy by investing in selected Vanguard funds to achieve its targeted allocation of assets to
U.S. and international stocks, and U.S. and international bonds. Financial statements and other
information about each underlying fund are available on vanguard.com.
A. The following significant accounting policies conform to generally accepted accounting
principles for U.S. investment companies. The fund consistently follows such policies in
preparing its financial statements.
1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard
fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time)
on the valuation date.
2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment
company and distribute all of its taxable income. Management has analyzed the fund’s tax positions
taken for all open federal income tax years (September 30, 2016–2019), and has concluded that no
provision for federal income tax is required in the fund’s financial statements.
3. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions
are determined on a tax basis and may differ from net investment income and realized capital gains
for financial reporting purposes.
4. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”)
participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to
a credit agreement that may be renewed annually; each fund is individually liable for its borrowings,
if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes,
and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating
funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn
amount of the facility; these fees are allocated to the funds based on a method approved by the
fund’s board of trustees and borne by the funds in which the fund invests (see Note B). Any
borrowings under this facility bear interest at a rate based upon the higher of the one-month
London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus
an agreed-upon spread.
The fund had no borrowings outstanding at September 30, 2019, or at any time during the period
then ended.
5. Other: Income and capital gain distributions received are recorded on the ex-dividend date.
Security transactions are accounted for on the date securities are bought or sold. Costs used to
determine realized gains (losses) on the sale of investment securities are those of the specific
securities sold.
12
Target Retirement Income Fund
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard
and the fund, Vanguard furnishes to the fund investment advisory, corporate management,
administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined
by the FSA). These costs of operations are allocated to the fund based on methods and guidelines
approved by the board of trustees. The FSA provides that expenses otherwise allocable to Vanguard
funds-of-funds may be reduced or eliminated to the extent of savings realized by the underlying
Vanguard funds by virtue of being part of a fund-of-funds. Accordingly, all expenses for services
provided by Vanguard to the fund and all other expenses incurred by the fund during the period
ended September 30, 2019, were borne by the underlying Vanguard funds in which the fund
invests. The fund’s trustees and officers are also trustees and officers, respectively, of the
underlying Vanguard funds, as well as directors and employees, respectively, of Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are
summarized in three broad levels for financial statement purposes. The inputs or methodologies
used to value securities are not necessarily an indication of the risk associated with investing in
those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine
the fair value of investments). Any investments valued with significant unobservable inputs are
noted on the Statement of Net Assets.
At September 30, 2019, 100% of the market value of the fund’s investments was determined
based on Level 1 inputs.
D. Permanent differences between book-basis and tax-basis components of net assets are
reclassified among capital accounts in the financial statements to reflect their tax character.
These reclassifications have no effect on net assets or net asset value per share. As of period
end, permanent differences primarily attributable to the accounting for distributions in
connection with fund share redemptions were reclassified between the following accounts:
Amount
($000)
Paid-in Capital 5,226
Total Distributable Earnings (Loss) (5,226)
13
Target Retirement Income Fund
Temporary differences between book-basis and tax-basis components of total distributable
earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods
for financial statement and tax purposes; these differences will reverse at some time in the future.
The differences are primarily related to the tax deferral of losses on wash sales; and payables for
distributions. As of period end, the tax-basis components of total distributable earnings (loss) are
detailed in the table as follows:
Amount
($000)
Undistributed Ordinary Income 28,153
Undistributed Long-Term Gains —
Capital Loss Carryforwards (Non-expiring) —
Net Unrealized Gains (Losses) 3,073,719
As of September 30, 2019, gross unrealized appreciation and depreciation for investments based
on cost for U.S. federal income tax purposes were as follows:
Amount
($000)
Tax Cost 13,910,515
Gross Unrealized Appreciation 3,098,699
Gross Unrealized Depreciation (24,980)
Net Unrealized Appreciation (Depreciation) 3,073,719
E. Capital shares issued and redeemed were:
Year Ended September 30,
2019 2018
Shares Shares
(000) (000)
Issued 182,664 218,663
Issued in Lieu of Cash Distributions 48,017 33,394
Redeemed (233,197) (259,138)
Net Increase (Decrease) in Shares Outstanding (2,516) (7,081)
14
15
Target Retirement Income Fund
F. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Current Period Transactions
Sept. 30, Proceeds Realized Sept. 30, 2018 from Net Change in Capital Gain 2019 Market Purchases Securities Gain Unrealized Distributions Market Value at Cost Sold (Loss) App. (Dep.) Income Received Value ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Vanguard Market Liquidity Fund 2 NA1 NA1 (5) — 135 — 4,215
Vanguard Short-Term Inflation-Protected Securities Index Fund 2,790,710 169,604 175,389 (4,083) 41,054 52,596 2,821,896
Vanguard Total Bond Market II Index Fund 6,189,471 505,293 820,039 (16,435) 445,027 173,273 — 6,303,317
Vanguard Total International Bond Index Fund 2,646,629 91,986 204,721 542 203,694 76,860 — 2,738,130
Vanguard Total International Stock Index Fund 1,972,431 252,370 132,265 (3,221) (77,129) 58,436 — 2,012,186
Vanguard Total Stock Market Index Fund 3,012,123 612,123 579,020 45,693 13,571 53,789 — 3,104,490
Total 16,611,366 1,631,376 1,911,434 22,491 626,217 415,089 — 16,984,234
1 Not applicable—purchases and sales are for temporary cash investment purposes.
G. Management has determined that no events or transactions occurred subsequent to September 30, 2019, that would require recognition or disclosure in these financial statements.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher thanthe performance data cited. For performance data current to the most recent month-end, visitour website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Performance Summary
See Financial Highlights for dividend and capital gains information.
Target Retirement 2015 Fund
16
Cumulative Performance: September 30, 2009, Through September 30, 2019Initial Investment of $10,000
2019201820172016201520142013201220112010
$37,000
6,000
20,163
Average Annual Total ReturnsPeriods Ended September 30, 2019
OneYear
FiveYears
TenYears
Final Valueof a $10,000Investment
Target Retirement 2015 Fund 6.08% 5.33% 7.26% $20,163
• • • • • • • • Target 2015 Composite Index 6.17 5.51 7.40 20,416________ MSCI US Broad Market Index 2.91 10.47 13.15 34,386
Target 2015 Composite Index: Derived by applying the fund’s target asset allocation to the results of the following benchmarks: forinternational stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index throughJune 2, 2013, and the FTSE Global All Cap ex US Index thereafter; for emerging-market stocks, the Select Emerging Markets Index throughAugust 23, 2006, the MSCI Emerging Markets Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013,and the FTSE Global All Cap ex US Index thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Bond Index through December31, 2009, and the Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter, as well as the Bloomberg Barclays U.S. TreasuryInflation-Protected Securities Index through June 2, 2013, and the Bloomberg Barclays U.S. Treasury Inflation-Protected Securities (TIPS)0–5 Year Index thereafter; for international bonds, the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped IndexHedged beginning June 3, 2013; and for U.S. stocks, the Dow Jones U.S. Total Stock Market Index (formerly known as the Dow JonesWilshire 5000 Index) through April 22, 2005, the MSCI US Broad Market Index through June 2, 2013, and the CRSP US Total Market Indexthereafter. International stock benchmark returns are adjusted for withholding taxes.
Underlying Vanguard FundsAs of September 30, 2019
Target Retirement 2015 Fund
17
Vanguard Total Bond Market II IndexFund Investor Shares 34.1%
Vanguard Total Stock Market Index FundInvestor Shares 22.7
Vanguard Total International Stock IndexFund Investor Shares 15.2
Vanguard Total International Bond IndexFund Investor Shares 15.0
Vanguard Short-Term Inflation-ProtectedSecurities Index Fund Investor Shares 13.0
Investment Companies (100.0%)
U.S. Stock Fund (22.7%)
Vanguard Total Stock Market Index Fund Investor Shares 48,263,224 3,546,381
International Stock Fund (15.2%)
Vanguard Total International Stock Index Fund Investor Shares 143,151,610 2,372,022
U.S. Bond Funds (47.1%) 1 Vanguard Total Bond Market II Index Fund Investor Shares 481,165,121 5,331,310
Vanguard Short-Term Inflation-Protected Securities Index Fund
Investor Shares 83,093,361 2,041,604
7,372,914
International Bond Fund (15.0%)
Vanguard Total International Bond Index Fund Investor Shares 200,225,799 2,354,655
Total Investment Companies (Cost $12,085,315) 15,645,972
Temporary Cash Investment (0.0%)
Money Market Fund (0.0%)1 Vanguard Market Liquidity Fund, 2.098% (Cost $10) 96 10
Total Investments (100.0%) (Cost $12,085,325) 15,645,982
Other Assets and Liabilities (0.0%)
Other Assets 39,641
Liabilities (38,333)
1,308
Net Assets (100%)
Applicable to 1,014,862,285 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) 15,647,290
Net Asset Value Per Share $15.42
Market
Value•
Shares ($000)
Target Retirement 2015 Fund
Statement of Net AssetsAs of September 30, 2019
Financial Statements
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
www.sec.gov.
18
Target Retirement 2015 Fund
Statement of Assets and Liabilities
Assets
Investments in Securities, at Value—Affiliated Funds 15,645,982
Receivables for Investment Securities Sold 17,995
Receivables for Accrued Income 13,439
Receivables for Capital Shares Issued 8,207
Total Assets 15,685,623
Liabilities
Payables for Investment Securities Purchased 13,389
Payables for Capital Shares Redeemed 16,924
Other Liabilities 8,020
Total Liabilities 38,333
Net Assets 15,647,290
At September 30, 2019, net assets consisted of:
Amount
($000)
Paid-in Capital 11,561,378
Total Distributable Earnings (Loss) 4,085,912
Net Assets 15,647,290
• See Note A in Notes to Financial Statements.
1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield.
Amount
($000)
See accompanying Notes, which are an integral part of the Financial Statements.
19
Year Ended September 30, 2019
($000)
Investment Income
Income
Income Distributions Received from Affiliated Funds 393,734
Other Income 50
Net Investment Income—Note B 393,784
Realized Net Gain (Loss)
Capital Gain Distributions Received from Affiliated Funds —
Affiliated Funds Sold 354,227
Realized Net Gain (Loss) 354,227
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds 144,719
Net Increase (Decrease) in Net Assets Resulting from Operations 892,730
Statement of Operations
Target Retirement 2015 Fund
See accompanying Notes, which are an integral part of the Financial Statements.
20
Statement of Changes in Net Assets
Target Retirement 2015 Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Year Ended September 30,
2019 2018
($000) ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income 393,784 404,958
Realized Net Gain (Loss) 354,227 752,181
Change in Unrealized Appreciation (Depreciation) 144,719 (394,093)
Net Increase (Decrease) in Net Assets Resulting from Operations 892,730 763,046
Distributions
Net Investment Income (381,350) (344,563)
Realized Capital Gain1 (655,589) (575,173)
Total Distributions (1,036,939) (919,736)
Capital Share Transactions
Issued 1,965,353 2,644,360
Issued in Lieu of Cash Distributions 1,009,506 898,348
Redeemed (3,593,321) (4,226,220)
Net Increase (Decrease) from Capital Share Transactions (618,462) (683,512)
Total Increase (Decrease) (762,671) (840,202)
Net Assets
Beginning of Period 16,409,961 17,250,163
End of Period 15,647,290 16,409,961
1 Includes fiscal 2019 and 2018 short-term gain distributions totaling $6,053,000 and $0, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
21
For a Share Outstanding Year Ended September 30,
Throughout Each Period 2019 2018 2017 2016 2015
Net Asset Value, Beginning of Period $15.60 $15.75 $15.19 $14.90 $15.44
Investment Operations
Net Investment Income .3761 .3711 .3051 .311 .327
Capital Gain Distributions Received — .0011 .0051 .007 .018
Net Realized and Unrealized Gain (Loss)
on Investments .455 .328 .846 .968 (.433)
Total from Investment Operations .831 .700 1.156 1.286 (.088)
Distributions
Dividends from Net Investment Income (.372) (.318) (.289) (.299) (.284)
Distributions from Realized Capital Gains (.639) (.532) (.307) (.697) (.168)
Total Distributions (1.011) (.850) (.596) (.996) (.452)
Net Asset Value, End of Period $15.42 $15.60 $15.75 $15.19 $14.90
Total Return2 6.08% 4.54% 7.95% 9.03% -0.66%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $15,647 $16,410 $17,250 $17,479 $18,858
Ratio of Total Expenses to Average Net Assets — — — — —
Acquired Fund Fees and Expenses 0.13% 0.13% 0.13% 0.14% 0.14%
Ratio of Net Investment Income to
Average Net Assets 2.52% 2.39% 2.02% 1.96% 1.95%
Portfolio Turnover Rate 10% 7% 7% 9% 16%
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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Target Retirement 2015 Fund
22
Notes to Financial Statements
Target Retirement 2015 Fund
Vanguard Target Retirement 2015 Fund is registered under the Investment Company Act of 1940
as an open-end investment company, or mutual fund. The fund follows a balanced investment
strategy by investing in selected Vanguard funds to achieve its targeted allocation of assets to
U.S. and international stocks, and U.S. and international bonds. Financial statements and other
information about each underlying fund are available on vanguard.com.
A. The following significant accounting policies conform to generally accepted accounting
principles for U.S. investment companies. The fund consistently follows such policies in
preparing its financial statements.
1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard
fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time)
on the valuation date.
2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment
company and distribute all of its taxable income. Management has analyzed the fund’s tax positions
taken for all open federal income tax years (September 30, 2016–2019), and has concluded that no
provision for federal income tax is required in the fund’s financial statements.
3. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions
are determined on a tax basis and may differ from net investment income and realized capital gains
for financial reporting purposes.
4. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”)
participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to
a credit agreement that may be renewed annually; each fund is individually liable for its borrowings,
if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes,
and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating
funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn
amount of the facility; these fees are allocated to the funds based on a method approved by the
fund’s board of trustees and borne by the funds in which the fund invests (see Note B). Any
borrowings under this facility bear interest at a rate based upon the higher of the one-month
London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate
plus an agreed-upon spread.
The fund had no borrowings outstanding at September 30, 2019, or at any time during the
period then ended.
5. Other: Income and capital gain distributions received are recorded on the ex-dividend date.
Security transactions are accounted for on the date securities are bought or sold. Costs used to
determine realized gains (losses) on the sale of investment securities are those of the specific
securities sold.
23
Target Retirement 2015 Fund
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard
and the fund, Vanguard furnishes to the fund investment advisory, corporate management,
administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined
by the FSA). These costs of operations are allocated to the fund based on methods and guidelines
approved by the board of trustees. The FSA provides that expenses otherwise allocable to Vanguard
funds-of-funds may be reduced or eliminated to the extent of savings realized by the underlying
Vanguard funds by virtue of being part of a fund-of-funds. Accordingly, all expenses for services
provided by Vanguard to the fund and all other expenses incurred by the fund during the period
ended September 30, 2019, were borne by the underlying Vanguard funds in which the fund
invests. The fund’s trustees and officers are also trustees and officers, respectively, of the
underlying Vanguard funds, as well as directors and employees, respectively, of Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are
summarized in three broad levels for financial statement purposes. The inputs or methodologies
used to value securities are not necessarily an indication of the risk associated with investing in
those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine
the fair value of investments). Any investments valued with significant unobservable inputs are
noted on the Statement of Net Assets.
At September 30, 2019, 100% of the market value of the fund’s investments was determined
based on Level 1 inputs.
D. Permanent differences between book-basis and tax-basis components of net assets are
reclassified among capital accounts in the financial statements to reflect their tax character.
These reclassifications have no effect on net assets or net asset value per share. As of period
end, permanent differences primarily attributable to the accounting for distributions in connection
with fund share redemptions were reclassified between the following accounts:
Amount
($000)
Paid-in Capital 38,554
Total Distributable Earnings (Loss) (38,554)
24
Target Retirement 2015 Fund
Temporary differences between book-basis and tax-basis components of total distributable
earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods
for financial statement and tax purposes; these differences will reverse at some time in the future.
The differences are primarily related to the tax deferral of losses on wash sales. As of period end,
the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
Amount
($000)
Undistributed Ordinary Income 234,166
Undistributed Long-Term Gains 291,089
Capital Loss Carryforwards (Non-expiring) —
Net Unrealized Gains (Losses) 3,560,657
As of September 30, 2019, gross unrealized appreciation and depreciation for investments based
on cost for U.S. federal income tax purposes were as follows:
Amount
($000)
Tax Cost 12,085,325
Gross Unrealized Appreciation 3,573,487
Gross Unrealized Depreciation (12,830)
Net Unrealized Appreciation (Depreciation) 3,560,657
E. Capital shares issued and redeemed were:
Year Ended September 30,
2019 2018
Shares Shares
(000) (000)
Issued 132,213 169,901
Issued in Lieu of Cash Distributions 73,100 58,562
Redeemed (242,220) (271,935)
Net Increase (Decrease) in Shares Outstanding (36,907) (43,472)
25
Target Retirement 2015 Fund
F. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Current Period Transactions
Sept. 30, Proceeds Realized Sept. 30,
2018 from Net Change in Capital Gain 2019
Market Purchases Securities Gain Unrealized Distributions Market
Value at Cost Sold (Loss) App. (Dep.) Income Received Value
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Vanguard Market
Liquidity Fund 3 NA1 NA1 (2) — 105 — 10
Vanguard Short-Term
Inflation-Protected
Securities Index
Fund 2,000,417 150,847 137,366 (1,538) 29,244 38,056 — 2,041,604
Vanguard Total
Bond Market II
Index Fund 5,441,759 442,037 920,796 (4,557) 372,867 149,705 — 5,331,310
Vanguard Total
International
Bond Index Fund 2,318,150 78,658 219,592 5,264 172,175 67,458 — 2,354,655
Vanguard Total
International Stock
Index Fund 2,652,203 192,420 355,546 14,708 (131,763) 72,475 — 2,372,022
Vanguard Total
Stock Market
Index Fund 3,998,603 648,982 1,143,752 340,352 (297,804) 65,935 — 3,546,381
Total 16,411,135 1,512,944 2,777,052 354,227 144,719 393,734 — 15,645,982
1 Not applicable—purchases and sales are for temporary cash investment purposes.
G. Management has determined that no events or transactions occurred subsequent to
September 30, 2019, that would require recognition or disclosure in these financial statements.
26
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher thanthe performance data cited. For performance data current to the most recent month-end, visitour website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Performance Summary
See Financial Highlights for dividend and capital gains information.
Target Retirement 2020 Fund
27
Cumulative Performance: September 30, 2009, Through September 30, 2019Initial Investment of $10,000
2019201820172016201520142013201220112010
$37,000
6,000
21,510
Average Annual Total ReturnsPeriods Ended September 30, 2019
OneYear
FiveYears
TenYears
Final Valueof a $10,000Investment
Target Retirement 2020 Fund 5.29% 5.97% 7.96% $21,510
• • • • • • • • Target 2020 Composite Index 5.45 6.16 8.19 21,970________ MSCI US Broad Market Index 2.91 10.47 13.15 34,386
Target 2020 Composite Index: Derived by applying the fund’s target asset allocation to the results of the following benchmarks: forinternational stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index throughJune 2, 2013, and the FTSE Global All Cap ex US Index thereafter; for emerging-market stocks, the Select Emerging Markets Index throughAugust 23, 2006, the MSCI Emerging Markets Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013,and the FTSE Global All Cap ex US Index thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Bond Index through December31, 2009, and the Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter; for international bonds, the Bloomberg BarclaysGlobal Aggregate ex-USD Float Adjusted RIC Capped Index Hedged beginning June 3, 2013; and for U.S. stocks, the MSCI US BroadMarket Index through June 2, 2013, and the CRSP US Total Market Index thereafter. International stock benchmark returns are adjustedfor withholding taxes.
Underlying Vanguard FundsAs of September 30, 2019
Target Retirement 2020 Fund
28
Vanguard Total Stock Market Index FundInvestor Shares 30.9%
Vanguard Total Bond Market II IndexFund Investor Shares 29.2
Vanguard Total International Stock IndexFund Investor Shares 20.6
Vanguard Total International Bond IndexFund Investor Shares 12.8
Vanguard Short-Term Inflation-ProtectedSecurities Index Fund Investor Shares 6.5
Investment Companies (100.1%)
U.S. Stock Fund (30.8%)
Vanguard Total Stock Market Index Fund Investor Shares 137,470,597 10,101,340
International Stock Fund (20.7%)
Vanguard Total International Stock Index Fund Investor Shares 408,557,900 6,769,805
U.S. Bond Funds (35.8%) 1 Vanguard Total Bond Market II Index Fund Investor Shares 864,540,974 9,579,114
Vanguard Short-Term Inflation-Protected Securities Index Fund
Investor Shares 87,340,462 2,145,955
11,725,069
International Bond Fund (12.8%)
Vanguard Total International Bond Index Fund Investor Shares 358,115,574 4,211,439
Total Investment Companies (Cost $24,747,832) 32,807,653
Temporary Cash Investment (0.0%)
Money Market Fund (0.0%)1 Vanguard Market Liquidity Fund, 2.098%
(Cost $7,708) 77,076 7,708
Total Investments (100.1%) (Cost $24,755,540) 32,815,361
Other Assets and Liabilities (-0.1%)
Other Assets 45,259
Liabilities (71,015)
(25,756)
Net Assets (100%)
Applicable to 1,016,898,680 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) 32,789,605
Net Asset Value Per Share $32.24
Market
Value•
Shares ($000)
Target Retirement 2020 Fund
Statement of Net AssetsAs of September 30, 2019
Financial Statements
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
www.sec.gov.
29
Target Retirement 2020 Fund
Statement of Assets and Liabilities
Assets
Investments in Securities, at Value—Affiliated Funds 32,815,361
Receivables for Accrued Income 24,058
Receivables for Capital Shares Issued 21,201
Total Assets 32,860,620
Liabilities
Payables for Investment Securities Purchased 33,857
Payables for Capital Shares Redeemed 37,158
Total Liabilities 71,015
Net Assets 32,789,605
At September 30, 2019, net assets consisted of:
Amount
($000)
Paid-in Capital 23,960,907
Total Distributable Earnings (Loss) 8,828,698
Net Assets 32,789,605
• See Note A in Notes to Financial Statements.
1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield.
Amount
($000)
See accompanying Notes, which are an integral part of the Financial Statements.
30
Year Ended September 30, 2019
($000)
Investment Income
Income
Income Distributions Received from Affiliated Funds 802,676
Other Income 97
Net Investment Income—Note B 802,773
Realized Net Gain (Loss)
Capital Gain Distributions Received from Affiliated Funds —
Affiliated Funds Sold 344,747
Futures Contracts (68)
Realized Net Gain (Loss) 344,679
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds 476,788
Net Increase (Decrease) in Net Assets Resulting from Operations 1,624,240
Statement of Operations
Target Retirement 2020 Fund
See accompanying Notes, which are an integral part of the Financial Statements.
31
Statement of Changes in Net Assets
Target Retirement 2020 Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Year Ended September 30,
2019 2018
($000) ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income 802,773 751,364
Realized Net Gain (Loss) 344,679 742,599
Change in Unrealized Appreciation (Depreciation) 476,788 351,099
Net Increase (Decrease) in Net Assets Resulting from Operations 1,624,240 1,845,062
Distributions
Net Investment Income (754,360) (641,685)
Realized Capital Gain1 (677,191) (232,702)
Total Distributions (1,431,551) (874,387)
Capital Share Transactions
Issued 5,598,664 7,270,038
Issued in Lieu of Cash Distributions 1,402,515 859,230
Redeemed (7,517,881) (7,248,867)
Net Increase (Decrease) from Capital Share Transactions (516,702) 880,401
Total Increase (Decrease) (324,013) 1,851,076
Net Assets
Beginning of Period 33,113,618 31,262,542
End of Period 32,789,605 33,113,618
1 Includes fiscal 2019 and 2018 short-term gain distributions totaling $14,887,000 and $12,707,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
32
For a Share Outstanding Year Ended September 30,
Throughout Each Period 2019 2018 2017 2016 2015
Net Asset Value, Beginning of Period $32.14 $31.19 $29.09 $27.52 $28.40
Investment Operations
Net Investment Income .7781 .7291 .6361 .619 .622
Capital Gain Distributions Received — .0021 .0081 .012 .026
Net Realized and Unrealized Gain (Loss)
on Investments .736 1.079 2.231 2.065 (.946)
Total from Investment Operations 1.514 1.810 2.875 2.696 (.298)
Distributions
Dividends from Net Investment Income (.745) (.631) (.562) (.591) (.541)
Distributions from Realized Capital Gains (.669) (.229) (.213) (.535) (.041)
Total Distributions (1.414) (.860) (.775) (1.126) (.582)
Net Asset Value, End of Period $32.24 $32.14 $31.19 $29.09 $27.52
Total Return2 5.29% 5.87% 10.17% 10.05% -1.13%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $32,790 $33,114 $31,263 $27,542 $26,693
Ratio of Total Expenses to Average Net Assets — — — — —
Acquired Fund Fees and Expenses 0.13% 0.13% 0.13% 0.14% 0.14%
Ratio of Net Investment Income to
Average Net Assets 2.51% 2.30% 2.15% 2.14% 2.07%
Portfolio Turnover Rate 13% 10% 9% 15% 25%
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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Target Retirement 2020 Fund
33
Notes to Financial Statements
Target Retirement 2020 Fund
Vanguard Target Retirement 2020 Fund is registered under the Investment Company Act of 1940
as an open-end investment company, or mutual fund. The fund follows a balanced investment
strategy by investing in selected Vanguard funds to achieve its targeted allocation of assets to
U.S. and international stocks, and U.S. and international bonds. Financial statements and other
information about each underlying fund are available on vanguard.com.
A. The following significant accounting policies conform to generally accepted accounting
principles for U.S. investment companies. The fund consistently follows such policies in
preparing its financial statements.
1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard
fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time)
on the valuation date.
2. Futures Contracts: The fund uses stock and bond futures contracts to a limited extent, with the
objectives of maintaining full exposure to the market and maintaining its target asset allocation.
The primary risks associated with the use of futures contracts are imperfect correlation between
changes in market values of investments held by the fund and the prices of futures contracts,
and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because
a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate
counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength
of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing
brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance
and requires daily settlement of variation margin representing changes in the market value of each
contract. Any assets pledged as initial margin for open contracts are noted in the Statement of
Net Assets.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of
the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the
contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the
Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed,
when they are recorded as realized futures gains (losses).
During the year ended September 30, 2019, the fund’s average investments in long and short
futures contracts represented less than 1% and 0% of net assets, respectively, based on the
average of the notional amounts at each quarter-end during the period. The fund had no open
futures contracts at September 30, 2019.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment
company and distribute all of its taxable income. Management has analyzed the fund’s tax positions
taken for all open federal income tax years (September 30, 2016–2019), and has concluded that no
provision for federal income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions
are determined on a tax basis and may differ from net investment income and realized capital gains
for financial reporting purposes.
34
Target Retirement 2020 Fund
5. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”)
participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to
a credit agreement that may be renewed annually; each fund is individually liable for its borrowings,
if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes,
and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating
funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn
amount of the facility; these fees are allocated to the funds based on a method approved by the
fund’s board of trustees and borne by the funds in which the fund invests (see Note B). Any
borrowings under this facility bear interest at a rate based upon the higher of the one-month
London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate
plus an agreed-upon spread.
The fund had no borrowings outstanding at September 30, 2019, or at any time during the period
then ended.
6. Other: Income and capital gain distributions received are recorded on the ex-dividend date.
Security transactions are accounted for on the date securities are bought or sold. Costs used to
determine realized gains (losses) on the sale of investment securities are those of the specific
securities sold.
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard
and the fund, Vanguard furnishes to the fund investment advisory, corporate management,
administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined
by the FSA). These costs of operations are allocated to the fund based on methods and guidelines
approved by the board of trustees. The FSA provides that expenses otherwise allocable to Vanguard
funds-of-funds may be reduced or eliminated to the extent of savings realized by the underlying
Vanguard funds by virtue of being part of a fund-of-funds. Accordingly, all expenses for services
provided by Vanguard to the fund and all other expenses incurred by the fund during the period
ended September 30, 2019, were borne by the underlying Vanguard funds in which the fund
invests. The fund’s trustees and officers are also trustees and officers, respectively, of the
underlying Vanguard funds, as well as directors and employees, respectively, of Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are
summarized in three broad levels for financial statement purposes. The inputs or methodologies
used to value securities are not necessarily an indication of the risk associated with investing in
those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine
the fair value of investments). Any investments valued with significant unobservable inputs are
noted on the Statement of Net Assets.
At September 30, 2019, 100% of the market value of the fund’s investments was determined
based on Level 1 inputs.
35
Target Retirement 2020 Fund
D. Permanent differences between book-basis and tax-basis components of net assets are
reclassified among capital accounts in the financial statements to reflect their tax character.
These reclassifications have no effect on net assets or net asset value per share. As of period
end, permanent differences primarily attributable to the accounting for distributions in connection
with fund share redemptions were reclassified between the following accounts:
Amount
($000)
Paid-in Capital 52,878
Total Distributable Earnings (Loss) (52,878)
Temporary differences between book-basis and tax-basis components of total distributable
earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods
for financial statement and tax purposes; these differences will reverse at some time in the future.
The differences are primarily related to the tax deferral of losses on wash sales. As of period end,
the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
Amount
($000)
Undistributed Ordinary Income 491,659
Undistributed Long-Term Gains 277,218
Capital Loss Carryforwards (Non-expiring) —
Net Unrealized Gains (Losses) 8,059,821
As of September 30, 2019, gross unrealized appreciation and depreciation for investments based
on cost for U.S. federal income tax purposes were as follows:
Amount
($000)
Tax Cost 24,755,540
Gross Unrealized Appreciation 8,068,823
Gross Unrealized Depreciation (9,002)
Net Unrealized Appreciation (Depreciation) 8,059,821
E. Capital shares issued and redeemed were:
Year Ended September 30,
2019 2018
Shares Shares
(000) (000)
Issued 181,093 229,558
Issued in Lieu of Cash Distributions 49,211 27,347
Redeemed (243,796) (228,859)
Net Increase (Decrease) in Shares Outstanding (13,492) 28,046
36
Target Retirement 2020 Fund
F. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Current Period Transactions
Sept. 30, Proceeds Realized Sept. 30,
2018 from Net Change in Capital Gain 2019
Market Purchases Securities Gain Unrealized Distributions Market
Value at Cost Sold (Loss) App. (Dep.) Income Received Value
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Vanguard Market
Liquidity Fund 1 NA1 NA1 1 — 119 — 7,708
Vanguard Short-Term
Inflation-Protected
Securities Index
Fund 1,773,964 479,612 135,409 (65) 27,853 37,703 — 2,145,955
Vanguard Total
Bond Market II
Index Fund 9,567,933 1,303,259 1,947,524 (30,235) 685,681 264,908 — 9,579,114
Vanguard Total
International Bond
Index Fund 4,044,384 204,239 348,725 (1,126) 312,667 118,439 — 4,211,439
Vanguard Total
International Stock
Index Fund 7,061,776 624,433 606,987 (28,855) (280,562) 200,254 — 6,769,805
Vanguard Total
Stock Market
Index Fund 10,662,039 1,433,217 2,130,092 405,027 (268,851) 181,253 — 10,101,340
Total 33,110,097 4,044,760 5,168,737 344,747 476,788 802,676 — 32,815,361
1 Not applicable—purchases and sales are for temporary cash investment purposes.
G. Management has determined that no events or transactions occurred subsequent to
September 30, 2019, that would require recognition or disclosure in these financial statements.
37
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher thanthe performance data cited. For performance data current to the most recent month-end, visitour website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Performance Summary
See Financial Highlights for dividend and capital gains information.
Target Retirement 2025 Fund
38
Cumulative Performance: September 30, 2009, Through September 30, 2019Initial Investment of $10,000
2019201820172016201520142013201220112010
$37,000
6,000
22,576
Average Annual Total ReturnsPeriods Ended September 30, 2019
OneYear
FiveYears
TenYears
Final Valueof a $10,000Investment
Target Retirement 2025 Fund 4.89% 6.39% 8.48% $22,576
• • • • • • • • Target 2025 Composite Index 5.02 6.58 8.71 23,055________ MSCI US Broad Market Index 2.91 10.47 13.15 34,386
Target 2025 Composite Index: Derived by applying the fund’s target asset allocation to the results of the following benchmarks: forinternational stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index throughJune 2, 2013, and the FTSE Global All Cap ex US Index thereafter; for emerging-market stocks, the Select Emerging Markets Index throughAugust 23, 2006, the MSCI Emerging Markets Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013,and the FTSE Global All Cap ex US Index thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Bond Index through December31, 2009, and the Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter; for international bonds, the Bloomberg BarclaysGlobal Aggregate ex-USD Float Adjusted RIC Capped Index Hedged beginning June 3, 2013; and for U.S. stocks, the Dow Jones U.S. TotalStock Market Index (formerly known as the Dow Jones Wilshire 5000 Index) through April 22, 2005, the MSCI US Broad Market Indexthrough June 2, 2013, and the CRSP US Total Market Index thereafter. International stock benchmark returns are adjusted for withholdingtaxes.
Underlying Vanguard FundsAs of September 30, 2019
Target Retirement 2025 Fund
39
Vanguard Total Stock Market Index FundInvestor Shares 36.7%
Vanguard Total Bond Market II IndexFund Investor Shares 27.3
Vanguard Total International Stock IndexFund Investor Shares 24.4
Vanguard Total International Bond IndexFund Investor Shares 11.6
Investment Companies (100.0%)
U.S. Stock Fund (36.7%)
Vanguard Total Stock Market Index Fund Investor Shares 220,732,650 16,219,435
International Stock Fund (24.4%)
Vanguard Total International Stock Index Fund Investor Shares 651,256,103 10,791,314
U.S. Bond Fund (27.3%) 1 Vanguard Total Bond Market II Index Fund Investor Shares 1,086,529,782 12,038,750
International Bond Fund (11.6%)
Vanguard Total International Bond Index Fund Investor Shares 434,236,586 5,106,622
Total Investment Companies (Cost $32,071,245) 44,156,121
Temporary Cash Investment (0.1%)
Money Market Fund (0.1%)1 Vanguard Market Liquidity Fund, 2.098%
(Cost $23,148) 231,462 23,149
Total Investments (100.1%) (Cost $32,094,393) 44,179,270
Other Assets and Liabilities (-0.1%)
Other Assets 63,488
Liabilities (96,670)
(33,182)
Net Assets (100%)
Applicable to 2,283,035,692 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) 44,146,088
Net Asset Value Per Share $19.34
Market
Value•
Shares ($000)
Target Retirement 2025 Fund
Statement of Net AssetsAs of September 30, 2019
Financial Statements
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
www.sec.gov.
40
Target Retirement 2025 Fund
Statement of Assets and Liabilities
Assets
Investments in Securities, at Value—Affiliated Funds 44,179,270
Receivables for Investment Securities Sold 11,000
Receivables for Accrued Income 30,123
Receivables for Capital Shares Issued 22,365
Total Assets 44,242,758
Liabilities
Payables for Investment Securities Purchased 46,780
Payables for Capital Shares Redeemed 49,890
Total Liabilities 96,670
Net Assets 44,146,088
At September 30, 2019, net assets consisted of:
Amount
($000)
Paid-in Capital 31,328,458
Total Distributable Earnings (Loss) 12,817,630
Net Assets 44,146,088
• See Note A in Notes to Financial Statements.
1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield.
Amount
($000)
See accompanying Notes, which are an integral part of the Financial Statements.
41
Year Ended September 30, 2019
($000)
Investment Income
Income
Income Distributions Received from Affiliated Funds 1,043,536
Other Income 221
Net Investment Income—Note B 1,043,757
Realized Net Gain (Loss)
Capital Gain Distributions Received from Affiliated Funds —
Affiliated Funds Sold 93,854
Futures Contracts (83)
Realized Net Gain (Loss) 93,771
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds 865,279
Net Increase (Decrease) in Net Assets Resulting from Operations 2,002,807
Statement of Operations
Target Retirement 2025 Fund
See accompanying Notes, which are an integral part of the Financial Statements.
42
Statement of Changes in Net Assets
Target Retirement 2025 Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Year Ended September 30,
2019 2018
($000) ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income 1,043,757 898,441
Realized Net Gain (Loss) 93,771 229,180
Change in Unrealized Appreciation (Depreciation) 865,279 1,462,402
Net Increase (Decrease) in Net Assets Resulting from Operations 2,002,807 2,590,023
Distributions
Net Investment Income (953,869) (768,518)
Realized Capital Gain1 (220,293) (182,505)
Total Distributions (1,174,162) (951,023)
Capital Share Transactions
Issued 7,794,924 9,267,239
Issued in Lieu of Cash Distributions 1,152,542 935,571
Redeemed (7,489,764) (7,093,003)
Net Increase (Decrease) from Capital Share Transactions 1,457,702 3,109,807
Total Increase (Decrease) 2,286,347 4,748,807
Net Assets
Beginning of Period 41,859,741 37,110,934
End of Period 44,146,088 41,859,741
1 Includes fiscal 2019 and 2018 short-term gain distributions totaling $82,582,000 and $21,642,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
43
For a Share Outstanding Year Ended September 30,
Throughout Each Period 2019 2018 2017 2016 2015
Net Asset Value, Beginning of Period $19.02 $18.25 $16.77 $15.90 $16.50
Investment Operations
Net Investment Income .4641 .4191 .3801 .362 .364
Capital Gain Distributions Received — .0011 .0041 .006 .012
Net Realized and Unrealized Gain (Loss)
on Investments .390 .807 1.534 1.280 (.624)
Total from Investment Operations .854 1.227 1.918 1.648 (.248)
Distributions
Dividends from Net Investment Income (.434) (.369) (.327) (.342) (.322)
Distributions from Realized Capital Gains (.100) (.088) (.111) (.436) (.030)
Total Distributions (.534) (.457) (.438) (.778) (.352)
Net Asset Value, End of Period $19.34 $19.02 $18.25 $16.77 $15.90
Total Return2 4.89% 6.79% 11.74% 10.67% -1.60%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $44,146 $41,860 $37,111 $31,706 $30,048
Ratio of Total Expenses to Average Net Assets — — — — —
Acquired Fund Fees and Expenses 0.13% 0.13% 0.14% 0.14% 0.15%
Ratio of Net Investment Income to
Average Net Assets 2.51% 2.24% 2.21% 2.18% 2.07%
Portfolio Turnover Rate 11% 8% 10% 15% 24%
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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Target Retirement 2025 Fund
44
Notes to Financial Statements
Target Retirement 2025 Fund
Vanguard Target Retirement 2025 Fund is registered under the Investment Company Act of 1940
as an open-end investment company, or mutual fund. The fund follows a balanced investment
strategy by investing in selected Vanguard funds to achieve its targeted allocation of assets to
U.S. and international stocks, and U.S. and international bonds. Financial statements and other
information about each underlying fund are available on vanguard.com.
A. The following significant accounting policies conform to generally accepted accounting
principles for U.S. investment companies. The fund consistently follows such policies in
preparing its financial statements.
1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard
fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time)
on the valuation date.
2. Futures Contracts: The fund uses stock and bond futures contracts to a limited extent, with the
objectives of maintaining full exposure to the market and maintaining its target asset allocation.
The primary risks associated with the use of futures contracts are imperfect correlation between
changes in market values of investments held by the fund and the prices of futures contracts,
and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because
a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate
counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength
of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing
brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance
and requires daily settlement of variation margin representing changes in the market value of each
contract. Any assets pledged as initial margin for open contracts are noted in the Statement of
Net Assets.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of
the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the
contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the
Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed,
when they are recorded as realized futures gains (losses).
During the year ended September 30, 2019, the fund’s average investments in long and short
futures contracts represented less than 1% and 0% of net assets, respectively, based on the
average of the notional amounts at each quarter-end during the period. The fund had no open
futures contracts at September 30, 2019.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment
company and distribute all of its taxable income. Management has analyzed the fund’s tax positions
taken for all open federal income tax years (September 30, 2016–2019), and has concluded that no
provision for federal income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions
are determined on a tax basis and may differ from net investment income and realized capital gains
for financial reporting purposes.
45
Target Retirement 2025 Fund
5. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”)
participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to
a credit agreement that may be renewed annually; each fund is individually liable for its borrowings,
if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes,
and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating
funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn
amount of the facility; these fees are allocated to the funds based on a method approved by the
fund’s board of trustees and borne by the funds in which the fund invests (see Note B). Any
borrowings under this facility bear interest at a rate based upon the higher of the one-month
London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate
plus an agreed-upon spread.
The fund had no borrowings outstanding at September 30, 2019, or at any time during the period
then ended.
6. Other: Income and capital gain distributions received are recorded on the ex-dividend date.
Security transactions are accounted for on the date securities are bought or sold. Costs used to
determine realized gains (losses) on the sale of investment securities are those of the specific
securities sold.
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard
and the fund, Vanguard furnishes to the fund investment advisory, corporate management,
administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined
by the FSA). These costs of operations are allocated to the fund based on methods and guidelines
approved by the board of trustees. The FSA provides that expenses otherwise allocable to Vanguard
funds-of-funds may be reduced or eliminated to the extent of savings realized by the underlying
Vanguard funds by virtue of being part of a fund-of-funds. Accordingly, all expenses for services
provided by Vanguard to the fund and all other expenses incurred by the fund during the period
ended September 30, 2019, were borne by the underlying Vanguard funds in which the fund
invests. The fund’s trustees and officers are also trustees and officers, respectively, of the
underlying Vanguard funds, as well as directors and employees, respectively, of Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are
summarized in three broad levels for financial statement purposes. The inputs or methodologies
used to value securities are not necessarily an indication of the risk associated with investing in
those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine
the fair value of investments). Any investments valued with significant unobservable inputs are
noted on the Statement of Net Assets.
At September 30, 2019, 100% of the market value of the fund’s investments was determined
based on Level 1 inputs.
46
Target Retirement 2025 Fund
D. Permanent differences between book-basis and tax-basis components of net assets are
reclassified among capital accounts in the financial statements to reflect their tax character.
These reclassifications have no effect on net assets or net asset value per share. As of period
end, permanent differences primarily attributable to the accounting for distributions in connection
with fund share redemptions were reclassified between the following accounts:
Amount
($000)
Paid-in Capital 35,117
Total Distributable Earnings (Loss) (35,117)
Temporary differences between book-basis and tax-basis components of total distributable
earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods
for financial statement and tax purposes; these differences will reverse at some time in the future.
The differences are primarily related to the tax deferral of losses on wash sales. As of period end,
the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
Amount
($000)
Undistributed Ordinary Income 712,819
Undistributed Long-Term Gains 19,934
Capital Loss Carryforwards (Non-expiring) —
Net Unrealized Gains (Losses) 12,084,877
As of September 30, 2019, gross unrealized appreciation and depreciation for investments based
on cost for U.S. federal income tax purposes were as follows:
Amount
($000)
Tax Cost 32,094,393
Gross Unrealized Appreciation 12,142,367
Gross Unrealized Depreciation (57,490)
Net Unrealized Appreciation (Depreciation) 12,084,877
E. Capital shares issued and redeemed were:
Year Ended September 30,
2019 2018
Shares Shares
(000) (000)
Issued 422,593 496,292
Issued in Lieu of Cash Distributions 68,077 50,490
Redeemed (407,912) (379,667)
Net Increase (Decrease) in Shares Outstanding 82,758 167,115
47
Target Retirement 2025 Fund
F. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Current Period Transactions
Sept. 30, Proceeds Realized Sept. 30,
2018 from Net Change in Capital Gain 2019
Market Purchases Securities Gain Unrealized Distributions Market
Value at Cost Sold (Loss) App. (Dep.) Income Received Value
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Vanguard Market
Liquidity Fund 3 NA1 NA1 4 — 336 — 23,149
Vanguard Total
Bond Market II
Index Fund 10,979,534 2,323,337 2,059,683 (30,214) 825,776 317,816 — 12,038,750
Vanguard Total
International Bond
Index Fund 4,578,888 474,784 321,637 (2,122) 376,709 137,845 — 5,106,622
Vanguard Total
International Stock
Index Fund 10,424,031 1,152,759 333,537 (11,915) (440,024) 308,448 — 10,791,314
Vanguard Total
Stock Market
Index Fund 15,883,028 1,925,857 1,830,369 138,101 102,818 279,091 — 16,219,435
Total 41,865,484 5,876,737 4,545,226 93,854 865,279 1,043,536 — 44,179,270
1 Not applicable—purchases and sales are for temporary cash investment purposes.
G. Management has determined that no events or transactions occurred subsequent to
September 30, 2019, that would require recognition or disclosure in these financial statements.
48
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher thanthe performance data cited. For performance data current to the most recent month-end, visitour website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Performance Summary
See Financial Highlights for dividend and capital gains information.
Target Retirement 2030 Fund
49
Cumulative Performance: September 30, 2009, Through September 30, 2019Initial Investment of $10,000
2019201820172016201520142013201220112010
$37,000
6,000
23,511
Average Annual Total ReturnsPeriods Ended September 30, 2019
OneYear
FiveYears
TenYears
Final Valueof a $10,000Investment
Target Retirement 2030 Fund 4.15% 6.67% 8.92% $23,511
• • • • • • • • Target 2030 Composite Index 4.30 6.86 9.16 24,015________ MSCI US Broad Market Index 2.91 10.47 13.15 34,386
Target 2030 Composite Index: Derived by applying the fund’s target asset allocation to the results of the following benchmarks: forinternational stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index throughJune 2, 2013, and the FTSE Global All Cap ex US Index thereafter; for emerging-market stocks, the Select Emerging Markets Index throughAugust 23, 2006, the MSCI Emerging Markets Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013,and the FTSE Global All Cap ex US Index thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Bond Index through December31, 2009, and the Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter; for international bonds, the Bloomberg BarclaysGlobal Aggregate ex-USD Float Adjusted RIC Capped Index Hedged beginning June 3, 2013; and for U.S. stocks, the MSCI US BroadMarket Index through June 2, 2013, and the CRSP US Total Market Index thereafter. International stock benchmark returns are adjustedfor withholding taxes.
Underlying Vanguard FundsAs of September 30, 2019
Target Retirement 2030 Fund
50
Vanguard Total Stock Market Index FundInvestor Shares 41.1%
Vanguard Total International Stock IndexFund Investor Shares 27.4
Vanguard Total Bond Market II IndexFund Investor Shares 22.1
Vanguard Total International Bond IndexFund Investor Shares 9.4
Investment Companies (100.1%)
U.S. Stock Fund (41.2%)
Vanguard Total Stock Market Index Fund Investor Shares 219,409,169 16,122,186
International Stock Fund (27.4%)
Vanguard Total International Stock Index Fund Investor Shares 646,650,747 10,715,003
U.S. Bond Fund (22.1%) 1 Vanguard Total Bond Market II Index Fund Investor Shares 779,601,140 8,637,980
International Bond Fund (9.4%)
Vanguard Total International Bond Index Fund Investor Shares 311,219,538 3,659,942
Total Investment Companies (Cost $28,758,328) 39,135,111
Temporary Cash Investment (0.0%)
Money Market Fund (0.0%)1 Vanguard Market Liquidity Fund, 2.098% (Cost $8,567) 86,659 8,567
Total Investments (100.1%) (Cost $28,766,895) 39,143,678
Other Assets and Liabilities (-0.1%)
Other Assets 48,603
Liabilities (78,270)
(29,667)
Net Assets (100%)
Applicable to 1,110,599,835 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) 39,114,011
Net Asset Value Per Share $35.22
Market
Value•
Shares ($000)
Target Retirement 2030 Fund
Statement of Net AssetsAs of September 30, 2019
Financial Statements
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
www.sec.gov.
51
Target Retirement 2030 Fund
Statement of Assets and Liabilities
Assets
Investments in Securities, at Value—Affiliated Funds 39,143,678
Receivables for Accrued Income 21,358
Receivables for Capital Shares Issued 27,245
Total Assets 39,192,281
Liabilities
Payables for Investment Securities Purchased 39,185
Payables for Capital Shares Redeemed 39,085
Total Liabilities 78,270
Net Assets 39,114,011
At September 30, 2019, net assets consisted of:
Amount
($000)
Paid-in Capital 28,148,011
Total Distributable Earnings (Loss) 10,966,000
Net Assets 39,114,011
• See Note A in Notes to Financial Statements.
1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield.
Amount
($000)
See accompanying Notes, which are an integral part of the Financial Statements.
52
Year Ended September 30, 2019
($000)
Investment Income
Income
Income Distributions Received from Affiliated Funds 892,761
Other Income 25
Net Investment Income—Note B 892,786
Realized Net Gain (Loss)
Capital Gain Distributions Received from Affiliated Funds —
Affiliated Funds Sold 139
Futures Contracts (138)
Realized Net Gain (Loss) 1
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds 649,511
Net Increase (Decrease) in Net Assets Resulting from Operations 1,542,298
Statement of Operations
Target Retirement 2030 Fund
See accompanying Notes, which are an integral part of the Financial Statements.
53
Statement of Changes in Net Assets
Target Retirement 2030 Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Year Ended September 30,
2019 2018
($000) ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income 892,786 751,027
Realized Net Gain (Loss) 1 72,973
Change in Unrealized Appreciation (Depreciation) 649,511 1,620,004
Net Increase (Decrease) in Net Assets Resulting from Operations 1,542,298 2,444,004
Distributions
Net Investment Income (797,744) (643,271)
Realized Capital Gain1 (72,087) (18,256)
Total Distributions (869,831) (661,527)
Capital Share Transactions
Issued 7,520,484 8,378,602
Issued in Lieu of Cash Distributions 856,060 651,753
Redeemed (5,848,492) (5,776,550)
Net Increase (Decrease) from Capital Share Transactions 2,528,052 3,253,805
Total Increase (Decrease) 3,200,519 5,036,282
Net Assets
Beginning of Period 35,913,492 30,877,210
End of Period 39,114,011 35,913,492
1 Includes fiscal 2019 and 2018 short-term gain distributions totaling $65,534,000 and $15,085,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
54
For a Share Outstanding Year Ended September 30,
Throughout Each Period 2019 2018 2017 2016 2015
Net Asset Value, Beginning of Period $34.74 $32.93 $29.77 $27.77 $28.95
Investment Operations
Net Investment Income .8301 .7541 .6831 .634 .633
Capital Gain Distributions Received — .0011 .0061 .008 .016
Net Realized and Unrealized Gain (Loss)
on Investments .486 1.744 3.167 2.390 (1.242)
Total from Investment Operations 1.316 2.499 3.856 3.032 (.593)
Distributions
Dividends from Net Investment Income (.767) (.670) (.576) (.597) (.558)
Distributions from Realized Capital Gains (.069) (.019) (.120) (.435) (.029)
Total Distributions (.836) (.689) (.696) (1.032) (.587)
Net Asset Value, End of Period $35.22 $34.74 $32.93 $29.77 $27.77
Total Return2 4.15% 7.65% 13.25% 11.15% -2.16%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $39,114 $35,913 $30,877 $24,966 $22,684
Ratio of Total Expenses to Average Net Assets — — — — —
Acquired Fund Fees and Expenses 0.14% 0.14% 0.14% 0.15% 0.15%
Ratio of Net Investment Income to
Average Net Assets 2.46% 2.22% 2.21% 2.20% 2.08%
Portfolio Turnover Rate 8% 9% 9% 16% 24%
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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Target Retirement 2030 Fund
55
Notes to Financial Statements
Target Retirement 2030 Fund
Vanguard Target Retirement 2030 Fund is registered under the Investment Company Act of 1940
as an open-end investment company, or mutual fund. The fund follows a balanced investment
strategy by investing in selected Vanguard funds to achieve its targeted allocation of assets to
U.S. and international stocks, and U.S. and international bonds. Financial statements and other
information about each underlying fund are available on vanguard.com.
A. The following significant accounting policies conform to generally accepted accounting
principles for U.S. investment companies. The fund consistently follows such policies in
preparing its financial statements.
1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard
fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time)
on the valuation date.
2. Futures Contracts: The fund uses stock and bond futures contracts to a limited extent, with the
objectives of maintaining full exposure to the market and maintaining its target asset allocation.
The primary risks associated with the use of futures contracts are imperfect correlation between
changes in market values of investments held by the fund and the prices of futures contracts,
and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because
a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate
counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength
of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing
brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance
and requires daily settlement of variation margin representing changes in the market value of each
contract. Any assets pledged as initial margin for open contracts are noted in the Statement of
Net Assets.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of
the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the
contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the
Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed,
when they are recorded as realized futures gains (losses).
During the year ended September 30, 2019, the fund’s average investments in long and short
futures contracts represented less than 1% and 0% of net assets, respectively, based on the
average of the notional amounts at each quarter-end during the period. The fund had no open
futures contracts at September 30, 2019.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment
company and distribute all of its taxable income. Management has analyzed the fund’s tax positions
taken for all open federal income tax years (September 30, 2016–2019), and has concluded that no
provision for federal income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions
are determined on a tax basis and may differ from net investment income and realized capital gains
for financial reporting purposes.
56
Target Retirement 2030 Fund
5. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”)
participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to
a credit agreement that may be renewed annually; each fund is individually liable for its borrowings,
if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes,
and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating
funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn
amount of the facility; these fees are allocated to the funds based on a method approved by the
fund’s board of trustees and borne by the funds in which the fund invests (see Note B). Any
borrowings under this facility bear interest at a rate based upon the higher of the one-month
London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate
plus an agreed-upon spread.
The fund had no borrowings outstanding at September 30, 2019, or at any time during the
period then ended.
6. Other: Income and capital gain distributions received are recorded on the ex-dividend date.
Security transactions are accounted for on the date securities are bought or sold. Costs used to
determine realized gains (losses) on the sale of investment securities are those of the specific
securities sold.
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard
and the fund, Vanguard furnishes to the fund investment advisory, corporate management,
administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined
by the FSA). These costs of operations are allocated to the fund based on methods and guidelines
approved by the board of trustees. The FSA provides that expenses otherwise allocable to Vanguard
funds-of-funds may be reduced or eliminated to the extent of savings realized by the underlying
Vanguard funds by virtue of being part of a fund-of-funds. Accordingly, all expenses for services
provided by Vanguard to the fund and all other expenses incurred by the fund during the period
ended September 30, 2019, were borne by the underlying Vanguard funds in which the fund
invests. The fund’s trustees and officers are also trustees and officers, respectively, of the
underlying Vanguard funds, as well as directors and employees, respectively, of Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are
summarized in three broad levels for financial statement purposes. The inputs or methodologies
used to value securities are not necessarily an indication of the risk associated with investing in
those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine
the fair value of investments). Any investments valued with significant unobservable inputs are
noted on the Statement of Net Assets.
At September 30, 2019, 100% of the market value of the fund’s investments was determined
based on Level 1 inputs.
57
Target Retirement 2030 Fund
D. Permanent differences between book-basis and tax-basis components of net assets, if any,
are reclassified among capital accounts in the financial statements to reflect their tax character.
These reclassifications have no effect on net assets or net asset value per share.
Temporary differences between book-basis and tax-basis components of total distributable
earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods
for financial statement and tax purposes; these differences will reverse at some time in the future.
The differences are primarily related to the tax deferral of losses on wash sales. As of period end,
the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
Amount
($000)
Undistributed Ordinary Income 590,696
Undistributed Long-Term Gains —
Capital Loss Carryforwards (Non-expiring) (1,479)
Net Unrealized Gains (Losses) 10,376,783
As of September 30, 2019, gross unrealized appreciation and depreciation for investments based
on cost for U.S. federal income tax purposes were as follows:
Amount
($000)
Tax Cost 28,766,895
Gross Unrealized Appreciation 10,468,747
Gross Unrealized Depreciation (91,964)
Net Unrealized Appreciation (Depreciation) 10,376,783
E. Capital shares issued and redeemed were:
Year Ended September 30,
2019 2018
Shares Shares
(000) (000)
Issued 224,037 246,657
Issued in Lieu of Cash Distributions 27,921 19,346
Redeemed (175,095) (169,972)
Net Increase (Decrease) in Shares Outstanding 76,863 96,031
58
Target Retirement 2030 Fund
F. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Current Period Transactions
Sept. 30, Proceeds Realized Sept. 30,
2018 from Net Change in Capital Gain 2019
Market Purchases Securities Gain Unrealized Distributions Market
Value at Cost Sold (Loss) App. (Dep.) Income Received Value
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Vanguard Market
Liquidity Fund 1,900 NA1 NA1 — — 268 — 8,567
Vanguard Total
Bond Market II
Index Fund 7,595,101 2,205,401 1,727,555 (17,121) 582,154 223,240 — 8,637,980
Vanguard Total
International Bond
Index Fund 3,114,618 478,561 197,543 (941) 265,247 94,705 — 3,659,942
Vanguard Total
International Stock
Index Fund 10,047,896 1,262,717 162,360 (229) (433,021) 301,067 — 10,715,003
Vanguard Total
Stock Market
Index Fund 15,156,276 1,686,093 973,744 18,430 235,131 273,481 — 16,122,186
Total 35,915,791 5,632,772 3,061,202 139 649,511 892,761 — 39,143,678
1 Not applicable—purchases and sales are for temporary cash investment purposes.
G. Management has determined that no events or transactions occurred subsequent to
September 30, 2019, that would require recognition or disclosure in these financial statements.
59
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher thanthe performance data cited. For performance data current to the most recent month-end, visitour website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Performance Summary
See Financial Highlights for dividend and capital gains information.
Target Retirement 2035 Fund
60
Cumulative Performance: September 30, 2009, Through September 30, 2019Initial Investment of $10,000
2019201820172016201520142013201220112010
$37,000
6,000
24,438
Average Annual Total ReturnsPeriods Ended September 30, 2019
OneYear
FiveYears
TenYears
Final Valueof a $10,000Investment
Target Retirement 2035 Fund 3.37% 6.92% 9.35% $24,438
• • • • • • • • Target 2035 Composite Index 3.57 7.13 9.58 24,973________ MSCI US Broad Market Index 2.91 10.47 13.15 34,386
Target 2035 Composite Index: Derived by applying the fund’s target asset allocation to the results of the following benchmarks: forinternational stocks of developed markets, the MSCI EAFE Index through December 15, 2010, the MSCI ACWI ex USA IMI Index throughJune 2, 2013, and the FTSE Global All Cap ex US Index thereafter; for emerging-market stocks, the Select Emerging Markets Index throughAugust 23, 2006, the MSCI Emerging Markets Index through December 15, 2010, the MSCI ACWI ex USA IMI Index through June 2, 2013,and the FTSE Global All Cap ex US Index thereafter; for U.S. bonds, the Bloomberg Barclays U.S. Aggregate Bond Index through December31, 2009, and the Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter; for international bonds, the Bloomberg BarclaysGlobal Aggregate ex-USD Float Adjusted RIC Capped Index Hedged beginning June 3, 2013; and for U.S. stocks, the Dow Jones U.S. TotalStock Market Index (formerly known as the Dow Jones Wilshire 5000 Index) through April 22, 2005, the MSCI US Broad Market Indexthrough June 2, 2013, and the CRSP US Total Market Index thereafter. International stock benchmark returns are adjusted for withholdingtaxes.
Underlying Vanguard FundsAs of September 30, 2019
Target Retirement 2035 Fund
61
Vanguard Total Stock Market Index FundInvestor Shares 45.8%
Vanguard Total International Stock IndexFund Investor Shares 30.3
Vanguard Total Bond Market II IndexFund Investor Shares 16.6
Vanguard Total International Bond IndexFund Investor Shares 7.3
Investment Companies (100.1%)
U.S. Stock Fund (45.9%)
Vanguard Total Stock Market Index Fund Investor Shares 231,726,158 17,027,238
International Stock Fund (30.3%)
Vanguard Total International Stock Index Fund Investor Shares 679,047,604 11,251,819
U.S. Bond Fund (16.6%) 1 Vanguard Total Bond Market II Index Fund Investor Shares 557,622,223 6,178,454
International Bond Fund (7.3%)
Vanguard Total International Bond Index Fund Investor Shares 229,075,816 2,693,932
Total Investment Companies (Cost $26,001,056) 37,151,443
Temporary Cash Investment (0.0%)
Money Market Fund (0.0%)1 Vanguard Market Liquidity Fund, 2.098% (Cost $9,487) 94,859 9,487
Total Investments (100.1%) (Cost $26,010,543) 37,160,930
Other Assets and Liabilities (-0.1%)
Other Assets 38,313
Liabilities (72,765)
(34,452)
Net Assets (100%)
Applicable to 1,718,650,318 outstanding $.001 par value shares of
beneficial interest (unlimited authorization) 37,126,478
Net Asset Value Per Share $21.60
Market
Value•
Shares ($000)
Target Retirement 2035 Fund
Statement of Net AssetsAs of September 30, 2019
Financial Statements
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
www.sec.gov.
62
Target Retirement 2035 Fund
Statement of Assets and Liabilities
Assets
Investments in Securities, at Value—Affiliated Funds 37,160,930
Receivables for Accrued Income 15,438
Receivables for Capital Shares Issued 22,875
Total Assets 37,199,243
Liabilities
Payables for Investment Securities Purchased 24,299
Payables for Capital Shares Redeemed 48,466
Total Liabilities 72,765
Net Assets 37,126,478
At September 30, 2019, net assets consisted of:
Amount
($000)
Paid-in Capital 25,423,436
Total Distributable Earnings (Loss) 11,703,042
Net Assets 37,126,478
• See Note A in Notes to Financial Statements.
1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield.
Amount
($000)
See accompanying Notes, which are an integral part of the Financial Statements.
63
Year Ended September 30, 2019
($000)
Investment Income
Income
Income Distributions Received from Affiliated Funds 834,841
Other Income 107
Net Investment Income—Note B 834,948
Realized Net Gain (Loss)
Capital Gain Distributions Received from Affiliated Funds —
Affiliated Funds Sold (5,651)
Futures Contracts (115)
Realized Net Gain (Loss) (5,766)
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds 378,643
Net Increase (Decrease) in Net Assets Resulting from Operations 1,207,825
Statement of Operations
Target Retirement 2035 Fund
See accompanying Notes, which are an integral part of the Financial Statements.
64
Statement of Changes in Net Assets
Target Retirement 2035 Fund
See accompanying Notes, which are an integral part of the Financial Statements.
Year Ended September 30,
2019 2018
($000) ($000)
Increase (Decrease) in Net Assets
Operations
Net Investment Income 834,948 714,823
Realized Net Gain (Loss) (5,766) 71,217
Change in Unrealized Appreciation (Depreciation) 378,643 1,827,238
Net Increase (Decrease) in Net Assets Resulting from Operations 1,207,825 2,613,278
Distributions
Net Investment Income (750,873) (618,358)
Realized Capital Gain1 (68,688) (49,432)
Total Distributions (819,561) (667,790)
Capital Share Transactions
Issued 6,583,434 7,351,952
Issued in Lieu of Cash Distributions 806,942 658,556
Redeemed (5,173,902) (5,232,422)
Net Increase (Decrease) from Capital Share Transactions 2,216,474 2,778,086
Total Increase (Decrease) 2,604,738 4,723,574
Net Assets
Beginning of Period 34,521,740 29,798,166
End of Period 37,126,478 34,521,740
1 Includes fiscal 2019 and 2018 short-term gain distributions totaling $64,476,000 and $21,099,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
65
For a Share Outstanding Year Ended September 30,
Throughout Each Period 2019 2018 2017 2016 2015
Net Asset Value, Beginning of Period $21.46 $20.20 $18.09 $16.95 $17.79
Investment Operations
Net Investment Income .5001 .4591 .4181 .393 .391
Capital Gain Distributions Received — .0011 .0031 .003 .007
Net Realized and Unrealized Gain (Loss)
on Investments .146 1.243 2.180 1.530 (.865)
Total from Investment Operations .646 1.703 2.601 1.926 (.467)
Distributions
Dividends from Net Investment Income (.464) (.410) (.356) (.371) (.368)
Distributions from Realized Capital Gains (.042) (.033) (.135) (.415) (.005)
Total Distributions (.506) (.443) (.491) (.786) (.373)
Net Asset Value, End of Period $21.60 $21.46 $20.20 $18.09 $16.95
Total Return2 3.37% 8.51% 14.76% 11.64% -2.75%
Ratios/Supplemental Data
Net Assets, End of Period (Millions) $37,126 $34,522 $29,798 $24,531 $22,800
Ratio of Total Expenses to Average Net Assets — — — — —
Acquired Fund Fees and Expenses 0.14% 0.14% 0.14% 0.15% 0.15%
Ratio of Net Investment Income to
Average Net Assets 2.42% 2.19% 2.22% 2.21% 2.07%
Portfolio Turnover Rate 7% 8% 9% 14% 23%
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.
Financial Highlights
See accompanying Notes, which are an integral part of the Financial Statements.
Target Retirement 2035 Fund
66
Notes to Financial Statements
Target Retirement 2035 Fund
Vanguard Target Retirement 2035 Fund is registered under the Investment Company Act of 1940
as an open-end investment company, or mutual fund. The fund follows a balanced investment
strategy by investing in selected Vanguard funds to achieve its targeted allocation of assets to
U.S. and international stocks, and U.S. and international bonds. Financial statements and other
information about each underlying fund are available on vanguard.com.
A. The following significant accounting policies conform to generally accepted accounting
principles for U.S. investment companies. The fund consistently follows such policies in
preparing its financial statements.
1. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard
fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time)
on the valuation date.
2. Futures Contracts: The fund uses stock and bond futures contracts to a limited extent, with the
objectives of maintaining full exposure to the market and maintaining its target asset allocation.
The primary risks associated with the use of futures contracts are imperfect correlation between
changes in market values of investments held by the fund and the prices of futures contracts,
and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because
a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate
counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength
of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing
brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance
and requires daily settlement of variation margin representing changes in the market value of each
contract. Any assets pledged as initial margin for open contracts are noted in the Statement of
Net Assets.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of
the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the
contracts are recorded in the Statement of Assets and Liabilities as an asset (liability) and in the
Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed,
when they are recorded as realized futures gains (losses).
During the year ended September 30, 2019, the fund’s average investments in long and short
futures contracts represented less than 1% and 0% of net assets, respectively, based on the
average of the notional amounts at each quarter-end during the period. The fund had no open
futures contracts at September 30, 2019.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment
company and distribute all of its taxable income. Management has analyzed the fund’s tax positions
taken for all open federal income tax years (September 30, 2016–2019), and has concluded that no
provision for federal income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions
are determined on a tax basis and may differ from net investment income and realized capital gains
for financial reporting purposes.
67
Target Retirement 2035 Fund
5. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”)
participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to
a credit agreement that may be renewed annually; each fund is individually liable for its borrowings,
if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes,
and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating
funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn
amount of the facility; these fees are allocated to the funds based on a method approved by the
fund’s board of trustees and borne by the funds in which the fund invests (see Note B). Any
borrowings under this facility bear interest at a rate based upon the higher of the one-month
London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate
plus an agreed-upon spread.
The fund had no borrowings outstanding at September 30, 2019, or at any time during the
period then ended.
6. Other: Income and capital gain distributions received are recorded on the ex-dividend date.
Security transactions are accounted for on the date securities are bought or sold. Costs used to
determine realized gains (losses) on the sale of investment securities are those of the specific
securities sold.
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard
and the fund, Vanguard furnishes to the fund investment advisory, corporate management,
administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined
by the FSA). These costs of operations are allocated to the fund based on methods and guidelines
approved by the board of trustees. The FSA provides that expenses otherwise allocable to Vanguard
funds-of-funds may be reduced or eliminated to the extent of savings realized by the underlying
Vanguard funds by virtue of being part of a fund-of-funds. Accordingly, all expenses for services
provided by Vanguard to the fund and all other expenses incurred by the fund during the period
ended September 30, 2019, were borne by the underlying Vanguard funds in which the fund
invests. The fund’s trustees and officers are also trustees and officers, respectively, of the
underlying Vanguard funds, as well as directors and employees, respectively, of Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are
summarized in three broad levels for financial statement purposes. The inputs or methodologies
used to value securities are not necessarily an indication of the risk associated with investing in
those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine
the fair value of investments). Any investments valued with significant unobservable inputs are
noted on the Statement of Net Assets.
At September 30, 2019, 100% of the market value of the fund’s investments was determined
based on Level 1 inputs.
68
Target Retirement 2035 Fund
D. Permanent differences between book-basis and tax-basis components of net assets, if any, are
reclassified among capital accounts in the financial statements to reflect their tax character. These
reclassifications have no effect on net assets or net asset value per share.
Temporary differences between book-basis and tax-basis components of total distributable
earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods
for financial statement and tax purposes; these differences will reverse at some time in the future.
The differences are primarily related to the tax deferral of losses on wash sales. As of period end,
the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:
Amount
($000)
Undistributed Ordinary Income 558,434
Undistributed Long-Term Gains —
Capital Loss Carryforwards (Non-expiring) (5,779)
Net Unrealized Gains (Losses) 11,150,387
As of September 30, 2019, gross unrealized appreciation and depreciation for investments based
on cost for U.S. federal income tax purposes were as follows:
Amount
($000)
Tax Cost 26,010,543
Gross Unrealized Appreciation 11,242,257
Gross Unrealized Depreciation (91,870)
Net Unrealized Appreciation (Depreciation) 11,150,387
E. Capital shares issued and redeemed were:
Year Ended September 30,
2019 2018
Shares Shares
(000) (000)
Issued 319,514 351,488
Issued in Lieu of Cash Distributions 43,129 31,768
Redeemed (252,750) (249,802)
Net Increase (Decrease) in Shares Outstanding 109,893 133,454
69
Target Retirement 2035 Fund
F. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Current Period Transactions
Sept. 30, Proceeds Realized Sept. 30,
2018 from Net Change in Capital Gain 2019
Market Purchases Securities Gain Unrealized Distributions Market
Value at Cost Sold (Loss) App. (Dep.) Income Received Value
($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Vanguard Market
Liquidity Fund 1,202 NA1 NA1 1 — 241 — 9,487
Vanguard Total
Bond Market II
Index Fund 5,473,272 1,611,971 1,315,303 (14,996) 423,510 161,307 — 6,178,454
Vanguard Total
International Bond
Index Fund 2,237,151 410,187 143,828 (1,142) 191,564 68,199 — 2,693,932
Vanguard Total
International Stock
Index Fund 10,652,883 1,299,688 234,588 (2,225) (463,939) 317,313 — 11,251,819
Vanguard Total
Stock Market
Index Fund 16,162,127 1,421,907 797,015 12,711 227,508 287,781 — 17,027,238
Total 34,526,635 4,743,753 2,490,734 (5,651) 378,643 834,841 — 37,160,930
1 Not applicable—purchases and sales are for temporary cash investment purposes.
G. Management has determined that no events or transactions occurred subsequent to
September 30, 2019, that would require recognition or disclosure in these financial statements.
70
To the Board of Trustees of Vanguard Chester Funds and Shareholders of Vanguard Target
Retirement Income Fund, Vanguard Target Retirement 2015 Fund, Vanguard Target Retirement
2020 Fund, Vanguard Target Retirement 2025 Fund, Vanguard Target Retirement 2030 Fund and
Vanguard Target Retirement 2035 Fund
Opinions on the Financial Statements
We have audited the accompanying statements of net assets and statements of assets and
liabilities of Vanguard Target Retirement Income Fund, Vanguard Target Retirement 2015 Fund,
Vanguard Target Retirement 2020 Fund, Vanguard Target Retirement 2025 Fund, Vanguard Target
Retirement 2030 Fund and Vanguard Target Retirement 2035 Fund (six of the funds constituting
Vanguard Chester Funds, hereafter collectively referred to as the “Funds”) as of September 30,
2019, the related statements of operations for the year ended September 30, 2019, the statements
of changes in net assets for each of the two years in the period ended September 30, 2019, including
the related notes, and the financial highlights for each of the five years in the period ended
September 30, 2019 (collectively referred to as the “financial statements”). In our opinion, the
financial statements present fairly, in all material respects, the financial position of each of the
Funds as of September 30, 2019, the results of each of their operations for the year then ended,
the changes in each of their net assets for each of the two years in the period ended September 30,
2019 and each of the financial highlights for each of the five years in the period ended September
30, 2019 in conformity with accounting principles generally accepted in the United States of
America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility
is to express an opinion on the Funds’ financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board (United States)
(“PCAOB”) and are required to be independent with respect to the Funds in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement, whether
due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the
financial statements, whether due to error or fraud, and performing procedures that respond to
those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. Our procedures included confirmation of securities owned
as of September 30, 2019 by correspondence with the transfer agent. We believe that our audits
provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
November 13, 2019
We have served as the auditor of one or more investment companies in The Vanguard Group of
Funds since 1975.
Report of Independent Registered Public Accounting Firm
71
Special 2019 tax information (unaudited) for Vanguard Target Retirement Funds
This information for the fiscal year ended September 30, 2019, is included pursuant to provisions of
the Internal Revenue Code.
The funds distributed capital gain dividends (from net long-term capital gains) to shareholders
during the fiscal year as follows:
Fund ($000)
Target Retirement Income Fund $224,912
Target Retirement 2015 Fund 667,010
Target Retirement 2020 Fund 677,118
Target Retirement 2025 Fund 138,391
Target Retirement 2030 Fund 6,553
Target Retirement 2035 Fund 4,138
For nonresident alien shareholders, 100% of short-term capital gain dividends distributed by the
funds are qualified short-term capital gains.
The funds distributed qualified dividend income to shareholders during the fiscal year as follows:
Fund ($000)
Target Retirement Income Fund 97,821
Target Retirement 2015 Fund 116,878
Target Retirement 2020 Fund 310,224
Target Retirement 2025 Fund 467,367
Target Retirement 2030 Fund 446,770
Target Retirement 2035 Fund 474,847
For corporate shareholders, the percentage of investment income (dividend income plus short-term
gains, if any) that qualifies for the dividends-received deduction is as follows:
Fund Percentage
Target Retirement Income Fund 10.9%
Target Retirement 2015 Fund 14.2
Target Retirement 2020 Fund 19.2
Target Retirement 2025 Fund 22.1
Target Retirement 2030 Fund 26.8
Target Retirement 2035 Fund 30.1
72
The funds designate to shareholders foreign source income and foreign taxes paid as follows:
Foreign Source Income Foreign Taxes Paid
Fund ($000) ($000)
Target Retirement Income Fund $140,335 $4,851
Target Retirement 2015 Fund 146,095 5,961
Target Retirement 2020 Fund 335,291 16,334
Target Retirement 2025 Fund 471,394 25,070
Target Retirement 2030 Fund 420,021 24,391
Target Retirement 2035 Fund 410,999 25,644
Shareholders will receive more detailed information with their Form 1099-DIV in January 2020 to
determine the calendar-year amounts to be included on their 2019 tax returns.
73
BLOOMBERG is a trademark and service mark of Bloomberg Finance L.P. BARCLAYS is a trademark and service mark
of Barclays Bank Plc, used under license. Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services
Limited (BISL) (collectively, Bloomberg), or Bloomberg’s licensors, own all proprietary rights in the Bloomberg Barclays
U.S. Aggregate Bond Index, Bloomberg Barclays U.S. Aggregate Float Adjusted Index, Bloomberg Barclays U.S. Treasury
Inflation Protected Securities Index, Bloomberg Barclays U.S. Treasury Inflation-Protected Securities (TIPS) 0–5 Year Index,
and the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged) (the Indices or
Bloomberg Barclays Indices).
Neither Barclays Bank Plc, Barclays Capital Inc., or any affiliate (collectively Barclays) or Bloomberg is the issuer or
producer of the Target Retirement Funds (including the Total Bond Market II Index Fund, the Total International Bond
Index Fund, and the Short-Term Inflation-Protected Securities Index Fund) and neither Bloomberg nor Barclays has any
responsibilities, obligations or duties to investors in the Target Retirement Funds. The Indices are licensed for use by The
Vanguard Group, Inc. (Vanguard) as the sponsor of the Target Retirement Funds. Bloomberg and Barclays’ only relationship
with Vanguard in respect to the Indices is the licensing of the Indices, which is determined, composed and calculated by
BISL, or any successor thereto, without regard to the Issuer or the Target Retirement Funds or the owners of the Target
Retirement Funds.
Additionally, Vanguard may for itself execute transaction(s) with Barclays in or relating to the Indices in connection with
the Target Retirement Funds. Investors acquire the Target Retirement Funds from Vanguard and investors neither acquire
any interest in the Indices nor enter into any relationship of any kind whatsoever with Bloomberg or Barclays upon making
an investment in the Target Retirement Funds. The Target Retirement Funds are not sponsored, endorsed, sold or promoted
by Bloomberg or Barclays. Neither Bloomberg nor Barclays makes any representation or warranty, express or implied
regarding the advisability of investing in the Target Retirement Funds or the advisability of investing in securities generally
or the ability of the Indices to track corresponding or relative market performance. Neither Bloomberg nor Barclays has
passed on the legality or suitability of the Target Retirement Funds with respect to any person or entity. Neither Bloomberg
nor Barclays is responsible for and has not participated in the determination of the timing of, prices at, or quantities of the
Target Retirement Funds to be issued. Neither Bloomberg nor Barclays has any obligation to take the needs of the Issuer
or the owners of the Target Retirement Funds or any other third party into consideration in determining, composing or
calculating the Indices. Neither Bloomberg nor Barclays has any obligation or liability in connection with administration,
marketing or trading of the Target Retirement Funds.
74
The licensing agreement between Bloomberg and Barclays is solely for the benefit of Bloomberg and Barclays and not
for the benefit of the owners of the Target Retirement Funds, investors or other third parties. In addition, the licensing
agreement between Vanguard and Bloomberg is solely for the benefit of Vanguard and Bloomberg and not for the benefit
of the owners of the Target Retirement Funds, investors or other third parties.
NEITHER BLOOMBERG NOR BARCLAYS SHALL HAVE ANY LIABILITY TO THE ISSUER, INVESTORS OR TO OTHER
THIRD PARTIES FOR THE QUALITY, ACCURACY AND/OR COMPLETENESS OF THE BLOOMBERG BARCLAYS INDICES
OR ANY DATA INCLUDED THEREIN OR FOR INTERRUPTIONS IN THE DELIVERY OF THE BLOOMBERG BARCLAYS
INDICES. NEITHER BLOOMBERG NOR BARCLAYS MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS
TO BE OBTAINED BY THE ISSUER, THE INVESTORS OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE
BLOOMBERG BARCLAYS INDICES OR ANY DATA INCLUDED THEREIN. NEITHER BLOOMBERG NOR BARCLAYS MAKES
ANY EXPRESS OR IMPLIED WARRANTIES, AND EACH HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO BLOOMBERG BARCLAYS
INDICES OR ANY DATA INCLUDED THEREIN. BLOOMBERG RESERVES THE RIGHT TO CHANGE THE METHODS OF
CALCULATION OR PUBLICATION, OR TO CEASE THE CALCULATION OR PUBLICATION OF THE BLOOMBERG BARCLAYS
INDICES, AND NEITHER BLOOMBERG NOR BARCLAYS SHALL BE LIABLE FOR ANY MISCALCULATION OF OR ANY
INCORRECT, DELAYED OR INTERRUPTED PUBLICATION WITH RESPECT TO ANY OF THE BLOOMBERG BARCLAYS
INDICES. NEITHER BLOOMBERG NOR BARCLAYS SHALL BE LIABLE FOR ANY DAMAGES, INCLUDING, WITHOUT
LIMITATION, ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, OR ANY LOST PROFITS AND EVEN IF
ADVISED OF THE POSSIBILITY OF SUCH, RESULTING FROM THE USE OF BLOOMBERG BARCLAYS INDICES OR ANY
DATA INCLUDED THEREIN OR WITH RESPECT TO THE TARGET RETIREMENT FUNDS.
None of the information supplied by Bloomberg or Barclays and used in this publication may be reproduced in any manner
without the prior written permission of both Bloomberg and Barclays Capital, the investment banking division of Barclays
Bank Plc. Barclays Bank Plc is registered in England No. 1026167. Registered office 1 Churchill Place London E14 5HP.
© 2019 Bloomberg. Used with Permission.
Source: Bloomberg Index Services Limited. Copyright 2019, Bloomberg. All rights reserved.
75
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The People Who Govern Your Fund
The trustees of your mutual fund are there to see that the fund is operated and managed in your
best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also
serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard
funds and provides services to them.
A majority of Vanguard’s board members are independent, meaning that they have no affiliation
with Vanguard or the funds they oversee, apart from the sizable personal investments they have
made as private individuals. The independent board members have distinguished backgrounds
in business, academia, and public service. Each of the trustees and executive officers oversees
212 Vanguard funds.
Information for each trustee and executive officer of the fund appears below. That information,
as well as the Vanguard fund count, is as of the date on the cover of this fund report. The mailing
address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information
about the trustees is in the Statement of Additional Information, which can be obtained, without
charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.
Interested Trustee1
Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal
occupation(s) during the past five years and other
experience: chairman of the board (January 2019–
present) of Vanguard and of each of the investment
companies served by Vanguard; chief executive officer
(January 2018–present) of Vanguard; chief executive
officer, president, and trustee (January 2018–present)
of each of the investment companies served by
Vanguard; president and director (2017–present) of
Vanguard; and president (February 2018–present) of
Vanguard Marketing Corporation. Chief investment
officer (2013–2017), managing director (2002–2017),
head of the Retail Investor Group (2006–2012), and
chief information officer (2001–2006) of Vanguard.
Chairman of the board (2011–2017) and trustee
(2009–2017) of the Children’s Hospital of Philadelphia;
trustee (2018–present) of The Shipley School.
Independent Trustees
Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal
occupation(s) during the past five years and other
experience: executive chief staff and marketing officer
for North America and corporate vice president (retired
2008) of Xerox Corporation (document management
products and services). Former president of the
Worldwide Channels Group, Latin America, and
Worldwide Customer Service and executive chief
staff officer of Developing Markets of Xerox. Executive
in residence and 2009–2010 Distinguished Minett
Professor at the Rochester Institute of Technology.
Director of SPX FLOW, Inc. (multi-industry manufac-
turing). Director of the University of Rochester Medical
Center, the Monroe Community College Foundation,
the United Way of Rochester, North Carolina A&T
University, and Roberts Wesleyan College. Trustee
of the University of Rochester.
Amy Gutmann
Born in 1949. Trustee since June 2006. Principal
occupation(s) during the past five years and other
experience: president (2004–present) of the University
of Pennsylvania. Christopher H. Browne Distinguished
Professor of Political Science, School of Arts and
Sciences, and professor of communication, Annenberg
School for Communication, with secondary faculty
appointments in the Department of Philosophy, School
of Arts and Sciences, and at the Graduate School of
Education, University of Pennsylvania. Trustee of the
National Constitution Center.
F. Joseph Loughrey
Born in 1949. Trustee since October 2009. Principal
occupation(s) during the past five years and other
experience: president and chief operating officer
(retired 2009) and vice chairman of the board
(2008–2009) of Cummins Inc. (industrial machinery).
Chairman of the board of Hillenbrand, Inc. (specialized
consumer services), and the Lumina 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.
Director of the V Foundation and Oxfam America.
Member of the advisory council for the College of
Arts and Letters and chair of the advisory board to
the Kellogg Institute for International Studies, both
at the University of Notre Dame.
Mark Loughridge
Born in 1953. Trustee since March 2012. Principal
occupation(s) during the past five years and other
experience: senior vice president and chief financial
officer (retired 2013) of IBM (information technology
services). Fiduciary member of IBM’s Retirement
Plan Committee (2004–2013), senior vice president
and general manager (2002–2004) of IBM Global
Financing, vice president and controller (1998–2002)
of IBM, and a variety of other prior management roles
at IBM. Member of the Council on Chicago Booth.
Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal
occupation(s) during the past five years and other
experience: chief investment officer (1989–present)
and vice president (1996–present) of the University
of Notre Dame. Assistant professor of finance at the
Mendoza College of Business, University of Notre
Dame, and member of the Notre Dame 403(b)
Investment Committee. Chairman of the board of
TIFF Advisory Services, Inc. Member of the board
of Catholic Investment Services, Inc. (investment
advisors) and the board of superintendence
of the Institute for the Works of Religion.
Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal
occupation(s) during the past five years and other
experience: president (2010–present) and chief
executive officer (2011–present) of The Guardian
Life Insurance Company of America. Chief operating
officer (2010–2011) and executive vice president
(2008–2010) of Individual Life and Disability of
The Guardian Life Insurance Company of America.
Member of the board of The Guardian Life Insurance
Company of America, the American Council of Life
Insurers, the Partnership for New York City (business
leadership), and the Committee Encouraging Corporate
Philanthropy. Trustee of the Economic Club of New
York and the Bruce Museum (arts and science).
Member of the Advisory Council for the Stanford
Graduate School of Business.
André F. Perold
Born in 1952. Trustee since December 2004. Principal
occupation(s) during the past five years and other
experience: George Gund Professor of Finance and
Banking, Emeritus at the Harvard Business School
(retired 2011). Chief investment officer and co-
managing partner of HighVista Strategies LLC (private
investment firm). Board of advisors and investment
committee member of the Museum of Fine Arts
Boston. Board member (2018–present) of RIT Capital
Partners (investment firm); investment committee
member of Partners Health Care System.
Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal
occupation(s) during the past five years and other
experience: deputy secretary (2014–2017) of
the United States Department of the Treasury.
Governor (2010–2014) of the Federal Reserve
Board. Commissioner (2007–2010) of financial
regulation for the State of Maryland. Member of
the board of directors (2012–2014) of Neighborhood
Reinvestment Corporation. Director (2017–present)
of i(x) Investments, LLC; director (2017–present)
of Reserve Trust. Rubinstein Fellow (2017–present)
of Duke University; trustee (2017–present) of
Amherst College.
Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal
occupation(s) during the past five years and other
experience: president and chief operating officer
(retired 2010) of Corning Incorporated (communications
equipment) and director of Corning Incorporated
(2000–2010) and Dow Corning (2001–2010).
Director (2012) of SPX Corporation (multi-industry
manufacturing). Overseer of the Amos Tuck School
of Business Administration, Dartmouth College
(2001–2013). Chairman of the board of trustees of
Colby-Sawyer College. Member of the board of
Hypertherm Inc. (industrial cutting systems, software,
and consumables).
Executive Officers
Glenn Booraem
Born in 1967. Principal occupation(s) during the past
five years and other experience: principal of Vanguard.
Investment stewardship officer (2017–present),
treasurer (2015–2017), controller (2010–2015),
and assistant controller (2001–2010) of each of
the investment companies served by Vanguard.
Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past
five years and other experience: principal of Vanguard
and global head of Fund Administration at Vanguard.
Treasurer (2017–present) of each of the investment
companies served by Vanguard. Partner (2005–2017)
at KPMG LLP (audit, tax, and advisory services).
Thomas J. Higgins
Born in 1957. Principal occupation(s) during the past
five years and other experience: principal of Vanguard.
Chief financial officer (2008–present) and treasurer
(1998–2008) of each of the investment companies
served by Vanguard.
Peter Mahoney
Born in 1974. Principal occupation(s) during the past
five years and other experience: principal of Vanguard.
Controller (2015–present) of each of the investment
companies served by Vanguard. Head of International
Fund Services (2008–2014) at Vanguard.
Anne E. Robinson
Born in 1970. Principal occupation(s) during the
past five years and other experience: general
counsel (2016–present) of Vanguard. Secretary
(2016–present) of Vanguard and of each of the
investment companies served by Vanguard.
Managing director (2016–present) of Vanguard.
Director and senior vice president (2016–2018)
of Vanguard Marketing Corporation. Managing
director and general counsel of Global Cards and
Consumer Services (2014–2016) at Citigroup.
Counsel (2003–2014) at American Express.
Michael Rollings
Born in 1963. Principal occupation(s) during the
past five years and other experience: finance
director (2017–present) and treasurer (2017) of each
of the investment companies served by Vanguard.
Managing director (2016–present) of Vanguard. Chief
financial officer (2016–present) of Vanguard. Director
(2016–present) of Vanguard Marketing Corporation.
Executive vice president and chief financial officer
(2006–2016) of MassMutual Financial Group.
John E. Schadl
Born in 1972. Principal occupation(s) during the
past five years and other experience: principal of
Vanguard. Chief compliance officer (2019–present)
of Vanguard and of each of the investment companies
served by Vanguard. Assistant vice president (May
2019–present) of Vanguard Marketing Corporation.
Vanguard Senior Management Team
Joseph Brennan Chris D. McIsaac
Mortimer J. Buckley James M. Norris
Gregory Davis Thomas M. Rampulla
John James Karin A. Risi
Martha G. King Anne E. Robinson
John T. Marcante Michael Rollings
P.O. Box 2600Valley Forge, PA 19482-2600
Connect with Vanguard® > vanguard.com
Fund Information > 800-662-7447
Direct Investor Account Services > 800-662-2739
Institutional Investor Services > 800-523-1036
Text Telephone for PeopleWho Are Deaf or Hard of Hearing > 800-749-7273
This material may be used in conjunctionwith the offering of shares of any Vanguardfund only if preceded or accompanied bythe fund’s current prospectus.
All comparative mutual fund data are from 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 theSEC’s website, and you can receive copies of thisinformation, for a fee, by sending a request via emailaddressed to [email protected].
© 2019 The Vanguard Group, Inc.All rights reserved.Vanguard Marketing Corporation, Distributor.
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