ESGV Vanguard ESG U.S. Stock ETF

Management style

Index

Asset class

Domestic Stock - General

Category

Large Blend

Risk / reward scale

Start of Risk Scale. On a scale of 1 to 5, 1 is less risk less reward, 5 is more risk more reward
The fund risk level is a 4

Less

More

End of Risk Scale.

Expense ratio

0.09%

as of 12/20/2024

as of 04/30/2025

Market price (MP)

$104.15

as of 05/30/2025

NAV price

$104.28

as of 05/30/2025

Overview

Key facts

IOV ticker symbol

ESGV.IV

CUSIP

921910733

Management style

Index

Asset class

Domestic Stock - General

Category

Large Blend

Inception date

09/18/2018

Fund Number

4393

Ratings

Risk / reward scale

Start of Risk Scale. On a scale of 1 to 5, 1 is less risk less reward, 5 is more risk more reward
The fund risk level is a 4

Less

More

End of Risk Scale.
Price

Minimum Investment

$1.00

as of 05/30/2025

Market price

$104.15

as of 05/30/2025

Market price change

decreased-$0.17 (-0.16%)

as of 05/30/2025

Expense Ratio

0.09%

as of 12/20/2024

NAV Price

$104.28

as of 05/30/2025

NAV Change

decreased-$0.02 (-0.02%)

as of 05/30/2025

Performance

YTD returns (MP)

-0.44%

as of 05/30/2025

YTD returns (NAV)

-0.21%

as of 05/30/2025

Product summary
  • Seeks to track the performance of the FTSE US All Cap Choice Index.
  • Market cap weighted index composed of large-, mid-, and small-capitalization stocks.
  • Screened for certain environmental, social, and corporate governance (ESG) criteria.
  • Specifically excludes stocks of certain companies related to the following: adult entertainment, alcohol, tobacco, cannabis, gambling, chemical and biological weapons, cluster munitions, anti-personnel landmines, nuclear weapons, conventional military weapons, civilian firearms, nuclear power, and coal, oil, or gas.
  • Excludes stocks of companies that do not meet certain labor, human rights, environmental, and anti-corruption standards.
  • Excludes companies that do not meet certain diversity criteria.
  • Employs a passively managed, full-replication approach.

Important note: The index excludes the stocks of companies that FTSE determines engage in, have a specified level of involvement in, and/or derive threshold amounts of revenue from one or more of the following activities: (i) produce adult entertainment; own/operate adult entertainment establishments; distribute adult entertainment materials; (ii) manufacture alcoholic beverages; supply alcohol-related products/services to alcoholic beverage manufacturers; involved in distribution and/or retail sale of alcoholic beverages; (iii) manufacture tobacco products; supply tobacco related products/services; involved in distribution and/or retail sale of tobacco products; (iv) engage in cannabis cultivation, cannabis distribution, the processing and distribution of cannabis plants, and the creation of cannabis derivative products per the Industry Classification Benchmark (ICB) standards; (v) own and/or operate a gambling establishment; manufacture specialized equipment used exclusively for gambling; provide supporting products/services to gambling operations; (vi) produce chemical or biological weapons and their components; (vii) produce (or produce specific and critical parts or services for) cluster munitions; (viii) produce (or produce specific and critical parts or services for) anti-personnel mines; (ix) produce nuclear weapons or their components; (x) manufacture military weapons systems and/or integral, tailor-made components of these weapons; provide tailor-made products and/or services that support military weapons; provide non-weapons related tailor-made products and/or services related to the military or defense industry; (xi) produce and sell assault weapons or small arms to civilian customers; produce and sell key components of small arms; involved in the retail and/or distribution of assault weapons or small arms; (xii) involved in the operation and supply of nuclear power generation, that harnesses the energy present within atomic nuclei or their components; engaged in the development, processing, production and distribution of equipment and facilities that are specifically designed for and critical to the generation of nuclear power; (xiii) own proved or probable reserves in coal, oil, or gas; (xiv) any company that FTSE determines per the ICB standards: (a) engages in the exploration for and drilling, production, and supply of crude oil on land or in offshore areas; (b) primarily engages in the refining and marketing of petroleum products; (c) supplies equipment and services to oil fields and offshore platforms; (d) operates pipelines carrying oil, gas or other forms of fuel; (e) engages in all three fields of petroleum production: extraction (upstream), transportation (midstream), and refining and marketing (downstream); or (f) mines, processes and markets coal per the ICB standards; (xv) generate electricity from oil and/or gas, or thermal coal; and (xvi) distribute gas to end users. The level or type of involvement in, or amount of revenue earned from, certain activities or business segments that lead to exclusion by FTSE can vary from one activity or business segment to another. The index methodology also excludes the stocks of companies that, as FTSE determines based on its internal assessment, do not meet certain labor, human rights, environmental, and anti-corruption standards, as well as companies that fail to meet two of the following three diversity criteria: (1) at least one woman on the board; (2) diversity policies in place; and (3) diversity management systems in place. FTSE uses internal methodologies to analyze various factors in determining whether a company meets the foregoing criteria and/or falls within a particular industry, including whether the company has a certain amount of revenue derived from an industry, the company’s level of involvement in an industry, and the severity of certain controversies (as determined by FTSE), which can vary from one company to another and from one activity to another.
With respect to 75% of its total assets, the fund may not: (1) purchase more than 10% of the outstanding voting securities of any one issuer or (2) purchase securities of any issuer if, as a result, more than 5% of the fund’s total assets would be invested in that issuer’s securities; except as may be necessary to approximate the composition of its target index. This limitation does not apply to obligations of the U.S. government or its agencies or instrumentalities.

Fund management

Vanguard Equity Index Group

Performance & fees

Total returns
Month-end/Quarterly Pre-Tax Toggle

as of 05/31/2025

Recent returns

Average annual

Month-end3-Month totalYTD1-yr3-yr5-yr10-yr

Since inception

09/18/2018

ESGV (Market price)6.81%-0.79%-0.44%13.11%14.39%15.01%12.92%
ESGV (NAV)
6.71%-0.67%-0.21%13.32%14.45%15.08%12.94%

Benchmark

Market Price/Nav Toggle

as of 03/31/2025

Year1st Qtr2nd Qtr3rd Qtr4th QtrYear-end

Benchmark

2025-6.37%
20249.82%4.00%5.51%3.47%24.69% 24.77%
20239.36%9.47%-3.70%13.53%30.90% 30.85%
2022-7.49%-17.91%-4.88%5.14%-24.05% -23.99%
20215.10%8.76%0.39%10.10%26.34% 26.54%
2020-18.96%23.76%10.09%13.93%25.79% 25.84%
201914.48%4.63%1.79%9.51%33.51% 33.53%
2018-14.13%-13.82%

as of 12/31/2024

Year

Capital return by NAV

Income return by NAV

Total return by NAV

Total return by Market Price

Benchmark

202423.30% 1.38%24.68% 24.69%24.77%
202329.11% 1.65%30.76% 30.90%30.85%
2022-25.04% 1.03%-24.02% -24.05%-23.99%
202125.10% 1.31%26.41% 26.34%26.54%
202024.08% 1.63%25.71% 25.79%25.84%
201931.59% 1.81%33.40% 33.51%33.53%
2018-14.02% 0.26%-13.76%

as of 05/31/2025

1-yr3-yr5-yr10-yr

Since inception

09/18/2018

ESGV (Market price)13.11%49.69%101.22%125.68%
ESGV (NAV)13.32% 49.92%101.80% 125.96%

Benchmark

Expense ratio

ESGV

0.09%

Average expense ratio of similar funds3

0.75%

Historical volatility measures
as of 04/30/2025
BenchmarkR-Squared4Beta4
FTSE US All Cap Choice Index 21.001.00
Dow Jones U.S. Total Stock Market Index0.991.02

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate so that investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.

Price

Current market price

Current price as of Sat May 31 00:00:01GMT+0 2025

Market price change

decreased-$0.17 (-0.16%)

Open

$103.91

High

$104.44

Low

$103.07

Bid/Ask spread

$3.88 (3.65%)

Volume

154,179

Size

24 X 24

Tick

DOWN

Quotes delayed at least 15 minutes. Source: FactSet.

Closing price

Closing price as of 05/30/2025

Market price change

decreased-$0.17 (-0.16%)

NAV

$104.28

NAV change

decreased-$0.02 (-0.02%)

30-day Median Bid/Ask spread

0.04%

52-week High

$109.48

as of 02/19/2025

52-week Low

$86.92

as of 04/08/2025

52-week Difference

$22.56 (25.96%)

Premium/Discount

-$0.13

25-day Avg Volume

245,796.52

50-day Avg Volume

302,888.2

30 day SEC yield

1.11%

 

B SEC yield footnote code

 

as of 04/30/2025

Historical prices
Chart/Table Toggle
NameDateNAV
ESGV 05/30/2025
$104.28

This chart can’t be displayed on mobile devices. For the best viewing experience, visit this page from your desktop or laptop.

Portfolio composition

Characteristics

as of 04/30/2025

FundamentalESGV
Benchmark
Number of stocks 1332 1331
Median market cap $226.4 B $226.4 B
Earnings growth rate 19.6% 19.6%
Short-term reserves
P/E ratio 25.6x 25.6x
P/B ratio 4.7x 4.7x
Turnover rate (Fiscal Year-end 08/31/2024) 2.4%
Return on equity 27.0% 27.0%
Foreign holdings 0.1%
Fund total net assets as of 04/30/2025 $9.5 B
Stylebox

Equity

Market Captialization Large Investment Style Blend

Weighted exposures

as of 04/30/2025

1.20%Basic Materials
Sectors5ESGV Benchmark Benchmark+/- Weight Basic Materials1.20%1.20%0.00%Consumer Discretionary16.50%16.50%0.00%Consumer Staples4.40%4.40%0.00%Energy0.10%0.10%0.00%Financials11.50%11.50%0.00%Health Care11.80%11.80%0.00%Industrials9.30%9.30%0.00%Real Estate3.10%3.10%0.00%Technology38.90%38.90%0.00%Telecommunications2.60%2.60%0.00%Utilities0.60%0.60%0.00%

Weighted equity exposures exclude any temporary cash investments and equity index futures. Some short-term fixed income securities are classified as cash and are excluded from the weighted bond exposures.

Holding details

as of 05/30/2025

Ticker Holdings CUSIP SEDOL % of fund*Shares Market value*
MSFT MICROSOFT CORP 594918104 2588173 7.30 % 1,615,684 $741,081,937
NVDA NVIDIA CORP 67066G104 2379504 6.97 % 5,083,995 $707,641,264
AAPL APPLE INC 037833100 2046251 6.30 % 3,200,978 $640,035,551
AMZN AMAZON.COM INC 023135106 2000019 4.13 % 2,039,091 $419,441,019
META META PLATFORMS INC-CLASS A 30303M102 B7TL820 3.02 % 476,005 $307,047,025
AVGO BROADCOM INC 11135F101 BDZ78H9 2.38 % 999,170 $241,769,165
TSLA TESLA INC 88160R101 B616C79 2.13 % 603,784 $216,414,299
GOOGL ALPHABET INC-CL A 02079K305 BYVY8G0 2.10 % 1,240,893 $213,259,871
GOOG ALPHABET INC-CL C 02079K107 BYY88Y7 1.86 % 1,089,984 $188,523,633
JPM JPMORGAN CHASE & CO 46625H100 2190385 1.59 % 610,379 $161,365,896
Name

of issuer

Title of issuer Coupon/Yield Category of investment Cusip/Other id Effective maturity date Final maturity date Principal amount Amortized cost
594918104
67066G104
037833100
023135106
30303M102
11135F101
88160R101
02079K305
02079K107
46625H100
Ticker Description Shares
MSFT
NVDA
AAPL
AMZN
META
AVGO
TSLA
GOOGL
GOOG
JPM
Ticker Holdings CUSIP SEDOL % of fund*Shares Market value*
MSFT MICROSOFT CORP 594918104 2588173 7.30 % 1,615,684 $741,081,937
NVDA NVIDIA CORP 67066G104 2379504 6.97 % 5,083,995 $707,641,264
AAPL APPLE INC 037833100 2046251 6.30 % 3,200,978 $640,035,551
AMZN AMAZON.COM INC 023135106 2000019 4.13 % 2,039,091 $419,441,019
META META PLATFORMS INC-CLASS A 30303M102 B7TL820 3.02 % 476,005 $307,047,025
AVGO BROADCOM INC 11135F101 BDZ78H9 2.38 % 999,170 $241,769,165
TSLA TESLA INC 88160R101 B616C79 2.13 % 603,784 $216,414,299
GOOGL ALPHABET INC-CL A 02079K305 BYVY8G0 2.10 % 1,240,893 $213,259,871
GOOG ALPHABET INC-CL C 02079K107 BYY88Y7 1.86 % 1,089,984 $188,523,633
JPM JPMORGAN CHASE & CO 46625H100 2190385 1.59 % 610,379 $161,365,896
Name

of issuer

Title of issuer Coupon/Yield Category of investment Cusip/Other id Effective maturity date Final maturity date Principal amount Amortized cost
594918104
67066G104
037833100
023135106
30303M102
11135F101
88160R101
02079K305
02079K107
46625H100
Ticker Description Shares
MSFT
NVDA
AAPL
AMZN
META
AVGO
TSLA
GOOGL
GOOG
JPM
Ticker Holdings CUSIP SEDOL % of fund*Shares Market value*
MSFT MICROSOFT CORP 594918104 2588173 7.30 % 1,615,684 $741,081,937
NVDA NVIDIA CORP 67066G104 2379504 6.97 % 5,083,995 $707,641,264
AAPL APPLE INC 037833100 2046251 6.30 % 3,200,978 $640,035,551
AMZN AMAZON.COM INC 023135106 2000019 4.13 % 2,039,091 $419,441,019
META META PLATFORMS INC-CLASS A 30303M102 B7TL820 3.02 % 476,005 $307,047,025
AVGO BROADCOM INC 11135F101 BDZ78H9 2.38 % 999,170 $241,769,165
TSLA TESLA INC 88160R101 B616C79 2.13 % 603,784 $216,414,299
GOOGL ALPHABET INC-CL A 02079K305 BYVY8G0 2.10 % 1,240,893 $213,259,871
GOOG ALPHABET INC-CL C 02079K107 BYY88Y7 1.86 % 1,089,984 $188,523,633
JPM JPMORGAN CHASE & CO 46625H100 2190385 1.59 % 610,379 $161,365,896
Name

of issuer

Title of issuer Coupon/Yield Category of investment Cusip/Other id Effective maturity date Final maturity date Principal amount Amortized cost
594918104
67066G104
037833100
023135106
30303M102
11135F101
88160R101
02079K305
02079K107
46625H100
Ticker Description Shares
MSFT
NVDA
AAPL
AMZN
META
AVGO
TSLA
GOOGL
GOOG
JPM
Ticker Holdings CUSIP SEDOL % of fund*Shares Market value*
MSFT MICROSOFT CORP 594918104 2588173 7.30 % 1,615,684 $741,081,937
NVDA NVIDIA CORP 67066G104 2379504 6.97 % 5,083,995 $707,641,264
AAPL APPLE INC 037833100 2046251 6.30 % 3,200,978 $640,035,551
AMZN AMAZON.COM INC 023135106 2000019 4.13 % 2,039,091 $419,441,019
META META PLATFORMS INC-CLASS A 30303M102 B7TL820 3.02 % 476,005 $307,047,025
AVGO BROADCOM INC 11135F101 BDZ78H9 2.38 % 999,170 $241,769,165
TSLA TESLA INC 88160R101 B616C79 2.13 % 603,784 $216,414,299
GOOGL ALPHABET INC-CL A 02079K305 BYVY8G0 2.10 % 1,240,893 $213,259,871
GOOG ALPHABET INC-CL C 02079K107 BYY88Y7 1.86 % 1,089,984 $188,523,633
JPM JPMORGAN CHASE & CO 46625H100 2190385 1.59 % 610,379 $161,365,896
Name

of issuer

Title of issuer Coupon/Yield Category of investment Cusip/Other id Effective maturity date Final maturity date Principal amount Amortized cost
594918104
67066G104
037833100
023135106
30303M102
11135F101
88160R101
02079K305
02079K107
46625H100
Ticker Description Shares
MSFT
NVDA
AAPL
AMZN
META
AVGO
TSLA
GOOGL
GOOG
JPM
Ticker Holdings CUSIP SEDOL % of fund*Shares Market value*
MSFT MICROSOFT CORP 594918104 2588173 7.30 % 1,615,684 $741,081,937
NVDA NVIDIA CORP 67066G104 2379504 6.97 % 5,083,995 $707,641,264
AAPL APPLE INC 037833100 2046251 6.30 % 3,200,978 $640,035,551
AMZN AMAZON.COM INC 023135106 2000019 4.13 % 2,039,091 $419,441,019
META META PLATFORMS INC-CLASS A 30303M102 B7TL820 3.02 % 476,005 $307,047,025
AVGO BROADCOM INC 11135F101 BDZ78H9 2.38 % 999,170 $241,769,165
TSLA TESLA INC 88160R101 B616C79 2.13 % 603,784 $216,414,299
GOOGL ALPHABET INC-CL A 02079K305 BYVY8G0 2.10 % 1,240,893 $213,259,871
GOOG ALPHABET INC-CL C 02079K107 BYY88Y7 1.86 % 1,089,984 $188,523,633
JPM JPMORGAN CHASE & CO 46625H100 2190385 1.59 % 610,379 $161,365,896
Name

of issuer

Title of issuer Coupon/Yield Category of investment Cusip/Other id Effective maturity date Final maturity date Principal amount Amortized cost
594918104
67066G104
037833100
023135106
30303M102
11135F101
88160R101
02079K305
02079K107
46625H100
Ticker Description Shares
MSFT
NVDA
AAPL
AMZN
META
AVGO
TSLA
GOOGL
GOOG
JPM

Distributions

Realized/Unrealized gains

as of 04/30/2025

Realized gain

-$2.91

% of NAV

decreased-2.98%

Unrealized gains of NAV

$23.10

% of NAV

increased23.64%

Fiscal year end

08/31/2025

Distribution schedule

Quarterly

How your fund can affect your taxes

A fund's capital gains and losses can reveal the tax implications of holding a particular fund in a taxable account. This is true of both realized and unrealized capital gains and losses.

These tax implications don't apply to investors holding a fund in a tax-deferred account, such as an IRA or employer-sponsored retirement plan.

Learn about realized and unrealized gains and losses

How your fund can affect your taxes

A fund's capital gains and losses can reveal the tax implications of holding a particular fund in a taxable account. This is true of both realized and unrealized capital gains and losses.

These tax implications don't apply to investors holding a fund in a tax-deferred account, such as an IRA or employer-sponsored retirement plan.

Learn about realized and unrealized gains and losses
Dividend income and capital gains
Type$/Share Payable date Record date Ex-dividend date
Dividend$0.26680003/25/202503/21/202503/21/2025
Dividend$0.28900012/24/202412/20/202412/20/2024
Dividend$0.28390009/24/202409/20/202409/20/2024
Dividend$0.30060006/25/202406/21/202406/21/2024
Dividend$0.22260003/20/202403/18/202403/15/2024
Dividend$0.32530012/20/202312/18/202312/15/2023

Fund management

Vanguard ESG U.S. Stock ETF seeks to track the performance of the FTSE US All Cap Choice Index, a market cap weighted index composed of large-, mid-, and small-capitalization stocks that is screened for certain environmental, social, and corporate governance (ESG) criteria by the Index provider, which is independent of Vanguard. Specifically, the index excludes stocks of companies that FTSE Russell (FTSE) determines engage in, have a specified level of involvement in, and/or derive threshold amounts of revenue from certain activities or business segments related to the following: adult entertainment, alcohol, tobacco, cannabis, gambling, chemical and biological weapons, cluster munitions, anti-personnel landmines, nuclear weapons, conventional military weapons, civilian firearms, nuclear power, and coal, oil, or gas. The index methodology also excludes the stocks of companies that do not meet certain labor, human rights, environmental, and anti-corruption standards, as well as companies that do not meet certain diversity criteria. For additional details regarding the Index Methodology, please see the Methodology section of FTSE Group’s website for the FTSE Global Choice Index Series. The experience and stability of Vanguard’s Equity Index Group has permitted continuous refinement of techniques for reducing tracking error. The group uses proprietary software to implement trading decisions that accommodate cash flow and maintain close correlation with index characteristics. Vanguard’s refined indexing process, combined with low management fees and efficient trading, has provided tight tracking net of expenses.

Vanguard Equity Index Group
Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world’s largest equity and fixed income managers. As chief investment officer, Gregory Davis, CFA, oversees Vanguard’s Equity Index, Investment Strategy, Quantitative Equity, and Fixed Income Groups. Rodney Comegys, Principal and global head of Vanguard's Equity Index Group, is responsible for all equity index funds. The Equity Index Group manages indexed equity portfolios covering U.S. and international markets. It has developed sophisticated portfolio construction methodologies and efficient trading strategies that seek to deliver returns that are highly correlated with target portfolio benchmarks. The group has advised Vanguard ESG U.S. Stock ETF since 2018.
Gerard C. O'Reilly
Principal, Portfolio manager.
Advised the fund since 2018. Worked in investment management since 1992. B.S., Villanova University.
Nick Birkett
CFA, Portfolio manager.
Advised the fund since 2023. Worked in investment management since 2005. BSc, University of Bath.
Aaron Choi
CFA, Portfolio manager.
Advised the fund since 2025. Worked in investment management since 2015. B.S., Pennsylvania State University.
Chris Nieves
CFA, Portfolio manager.
Advised the fund since 2025. Worked in investment management since 2013. B.A., Cornell University. MEng., Cornell University.

Performance & fees

1
Effective July 15, 2024, the market price returns are calculated using the official closing price as reported by the ETF’s primary exchange. Prior to July 15, 2024, the market price returns were calculated using the midpoint between the bid and ask prices as of the closing time of the New York Stock Exchange (typically 4 p.m., Eastern time). The returns shown do not represent the returns you would receive if you traded shares at other times.
2
The FTSE US All Cap Choice Index is maintained by FTSE, a widely known global index provider. The index is a subset of the FTSE Global Choice Index Series, which is designed to help investors align their investment portfolios with their values by excluding companies based on the impact of their conduct or products on society and/or the environment.
3

Most recent data available. © 2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; (3) does not constitute investment advice offered by Morningstar; and (4) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

4

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

Portfolio composition

5

Sector categories are based on the Industry Classification Benchmark system (“ICB”), except for the “Other” category (if applicable), which includes securities that have not been provided an ICB classification as of the effective reporting period.

© 2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Vanguard ETFs as a share class: Vanguard ETFs® (exchange-traded funds) are a class of shares listed for trading on an exchange. The shares are available only through a broker, including Vanguard Brokerage Services®.

Vanguard ETF® Shares are not redeemable with the issuing fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

Total returns: Short-term total return information is provided only as a service. Historical performance—particularly short-term performance—is no guarantee of future returns. Price, yield, and return on an actual investment will fluctuate, and you may have a gain or loss when you sell. Average annual returns include changes in price and reinvestments of dividends and capital gains. Since-inception returns for less than 1 year and year-to-date returns aren't annualized. Index performance is provided as a benchmark but isn't illustrative of any particular investment. You can't invest in an index.

Standardized returns: To see quarterly fee-adjusted returns, refer to the Price & Performance details.

Expense ratios: Expense ratios are displayed on Overview. For investments that are less than 1 fiscal year old, expense ratios are estimated.

Risk: All investing is subject to risk, including the possible loss of the money you invest. Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility. Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

Important note: The index excludes the stocks of companies that FTSE determines engage in, have a specified level of involvement in, and/or derive threshold amounts of revenue from one or more of the following activities: (i) produce adult entertainment; own/operate adult entertainment establishments; distribute adult entertainment materials; (ii) manufacture alcoholic beverages; supply alcohol-related products/services to alcoholic beverage manufacturers; involved in distribution and/or retail sale of alcoholic beverages; (iii) manufacture tobacco products; supply tobacco related products/services; involved in distribution and/or retail sale of tobacco products; (iv) engage in cannabis cultivation, cannabis distribution, the processing and distribution of cannabis plants, and the creation of cannabis derivative products per the Industry Classification Benchmark (ICB) standards; (v) own and/or operate a gambling establishment; manufacture specialized equipment used exclusively for gambling; provide supporting products/services to gambling operations; (vi) produce chemical or biological weapons and their components; (vii) produce (or produce specific and critical parts or services for) cluster munitions; (viii) produce (or produce specific and critical parts or services for) anti-personnel mines; (ix) produce nuclear weapons or their components; (x) manufacture military weapons systems and/or integral, tailor-made components of these weapons; provide tailor-made products and/or services that support military weapons; provide non-weapons related tailor-made products and/or services related to the military or defense industry; (xi) produce and sell assault weapons or small arms to civilian customers; produce and sell key components of small arms; involved in the retail and/or distribution of assault weapons or small arms; (xii) involved in the operation and supply of nuclear power generation, that harnesses the energy present within atomic nuclei or their components; engaged in the development, processing, production and distribution of equipment and facilities that are specifically designed for and critical to the generation of nuclear power; (xiii) own proved or probable reserves in coal, oil, or gas; (xiv) any company that FTSE determines per the ICB standards: (a) engages in the exploration for and drilling, production, and supply of crude oil on land or in offshore areas; (b) primarily engages in the refining and marketing of petroleum products; (c) supplies equipment and services to oil fields and offshore platforms; (d) operates pipelines carrying oil, gas or other forms of fuel; (e) engages in all three fields of petroleum production: extraction (upstream), transportation (midstream), and refining and marketing (downstream); or (f) mines, processes and markets coal per the ICB standards; (xv) generate electricity from oil and/or gas, or thermal coal; and (xvi) distribute gas to end users. The level or type of involvement in, or amount of revenue earned from, certain activities or business segments that lead to exclusion by FTSE can vary from one activity or business segment to another. The index methodology also excludes the stocks of companies that, as FTSE determines based on its internal assessment, do not meet certain labor, human rights, environmental, and anti-corruption standards, as well as companies that fail to meet two of the following three diversity criteria: (1) at least one woman on the board; (2) diversity policies in place; and (3) diversity management systems in place. FTSE uses internal methodologies to analyze various factors in determining whether a company meets the foregoing criteria and/or falls within a particular industry, including whether the company has a certain amount of revenue derived from an industry, the company's level of involvement in an industry, and the severity of certain controversies (as determined by FTSE), which can vary from one company to another and from one activity to another.

Vanguard average ETF expense ratio: 0.05%. Industry average ETF expense ratio: 0.22%. All averages are asset-weighted. Industry average excludes Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2023.

An investment in the fund could lose money over short or long periods of time. You should expect the fund’s share price and total return to fluctuate within a wide range. The fund is subject to the following risks, which could affect the fund’s performance:

  • Stock market risk: the chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising prices and periods of falling prices. The fund‘s target index tracks a subset of the U.S. stock market, which could cause the fund to perform differently from the overall market. In addition, the fund’s target index may, at times, become focused in stocks of a particular market sector, which would subject the fund to proportionately higher exposure to the risks of that sector.
  • Investment style risk: the chance that returns from small- and mid-capitalization stocks may be more volatile in price than the large-cap stocks that dominate the overall market, and they often perform quite differently. The stock prices of small and mid-size companies tend to experience greater volatility because, among other things, these companies tend to be more sensitive to changing economic conditions.
  • ESG investing risks: The fund is subject to ESG investing risks. The index provider selects securities for the Index based on the ESG criteria disclosed in the fund’s principal investment strategies. Using ESG criteria could result in the fund investing in securities that trail the returns of other funds that use ESG criteria or in the fund underperforming the market as a whole. The index provider’s use of ESG criteria may result in the Index becoming focused, at times, in a particular market sector, which would subject the fund to proportionately higher risks of that sector. Interpretations of what it means for a company or issuer to exhibit ESG characteristics can – and do – vary significantly across individuals, index providers, advisors, and other funds that use ESG criteria. As a result, the fund’s disclosed ESG criteria, or the index provider’s assessment of whether or not a company or issuer meets the fund’s disclosed ESG criteria, may not align with your personal view of what it means for a company or issuer to exhibit ESG characteristics. Further, individual securities held by the fund may not reflect your personal preferences, beliefs, expectations, and/or values. In order to assess a company or issuer against the fund’s disclosed ESG criteria, the index provider depends on the availability of data obtained through voluntary or third-party reporting. There can be no assurance that this data will be accurate, complete, or current, which could result in an inaccurate assessment of a company or issuer.
  • Index replicating risk, which is the chance that the fund may be prevented from holding one or more securities in the same proportion as in its target index.
  • Index-related risks: The fund is subject to risks associated with index investing, which include passive management risk, tracking error risk, and index provider risk. Passive management risk is the chance that the fund's use of an indexing strategy will negatively impact the fund's performance. Because the fund seeks to track the performance of its target index regardless of how that index is performing, the fund's performance may be lower than it would be if the fund were actively managed. Tracking error risk is the chance that the fund's performance will deviate from the performance of its target index. Tracking error risk may be heightened during times of increased market volatility or under other unusual market conditions. Index provider risk is the chance that the fund will be negatively impacted by changes or errors made by the index provider. Any gains, losses, or costs associated with or resulting from an error made by the index provider will generally be borne by the fund and, as a result, the fund's shareholders. 
  • Sector risk: The chance that significant problems will affect a particular sector, or that returns from that sector will trail returns from the overall stock market. Daily fluctuations in specific market sectors are often more extreme or volatile than fluctuations in the overall market. Because a significant portion of the fund’s assets are in the information technology sector, the fund’s performance is impacted by the general condition of that sector. Companies in the information technology sector could be affected by, among other things, overall economic conditions, short product cycles, rapid obsolescence of products, competition, and government regulation.
  • Nondiversification risk: Because the fund seeks to closely track the composition of the fund's target index, from time to time, more than 25% of the fund's total assets may be invested in issuers representing more than 5% of the fund's total assets due to an index rebalance or market movement, which would result in the fund being nondiversified under the Investment Company Act of 1940.  The fund’s performance may be hurt disproportionately by the poor performance of relatively few stocks, or even a single stock, and the fund’s shares may experience significant fluctuations in value.