(PUB) Investing 2015

6

Data through June 30, 2015 Vanguard High Dividend Yield Index Inv

Ticker

Status Yield Total Assets

Mstar Category

VHDYX Open

3.0% $15,353 mil

Large Value

Morningstar Analyst Rating 06-11-15

Investment Style Equity Stock %

Historical Profile Return Risk Rating Above Avg Below Avg Above Avg

100% 99% 100% 100% 100% 100% 100% 100% 100%

„

Manager Change Partial Manager Change

10.0 12.5 15.5

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Positive Positive

Investment Values of Fund Investment Values of S&P 500

People Parent Price

5.0

Performance Quartile (within Category) History

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 06-15

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

20.49 . .

20.31

13.26

15.06 17.52 -8.94 -2.17

16.72 14.02 -1.04 -1.49

17.91 10.35

19.54 12.59 -3.41 -4.92

24.69 30.13 -2.26 -2.40

27.22 13.38 -0.31 -0.07

26.67 -0.59 -1.82 0.02 1.46 -2.05

NAV

-32.51 1.54 . . . 4.49 -3.95 . . . 4.34 1.71 . . . 2.72 2.51 . . . -35.23 -0.97 . . . 15 53 . . .

Total Return %

8.24 9.96 3.07 7.28 0.51 0.00 0.25 3.04 2

+/-S&P 500

+/-Russ 1000 Vl Income Return % Capital Return %

3.40

2.79

3.46 9.13 0.61 0.00 0.20 3.22 75

3.49

3.01

14.12

11.23

26.64

10.37

83

40

65

10

65

Total Rtn % Rank Cat

Pillar Spectrum Positive

0.07 . . 0.00 . .

0.51 0.00

0.55 0.00

0.44 0.00 0.35 3.63

0.42 0.00 0.30 2.86

0.67 0.00 0.19 3.10

0.74 0.00 0.18 2.92

0.40 0.00

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

0.35 0.40 . . . 3.41 2.43 . . . 11 11 . . .

. . .

Performance 06-30-15 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

20

34

16

11

13

12

2011 2012 2013 2014 2015

5.74 2.29 7.90 0.08 11.88 3.70 1.93 5.77

-9.65 12.93 10.35 5.47 -1.15 12.59 2.53 9.40 30.13 0.75 4.38 13.38

19 . .

66

92

168

388

908

1,655

3,191

4,279

4,385

Portfolio Analysis 05-31-15 Share change since 04-15 Total Stocks:435 Sector

Rating and Risk Time Load-Adj

-0.27

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

. . . .

Period Return % Rtn vs Cat

Exxon Mobil Corporation Microsoft Corp Wells Fargo & Co Johnson & Johnson General Electric Co JPMorgan Chase & Co Procter & Gamble Co

Energy

12.5 -8.47 4.17

1 Yr 3 Yr 5 Yr

4.54

Trailing

Total

+/-

+/- Russ %Rank Growth of

Technology 18.4 -3.62 3.98 Finan Svs 13.7 3.91 3.38 Hlth care 17.4 -5.41 3.21 Finan Svs 12.4 9.56 2.85 Cnsmr Def 20.8 -12.67 2.49 Hlth care 23.3 9.44 2.49 Comm Svs 19.6 1.99 2.35 Industrl 18.8 -3.64 3.19

Return% S&P 500 1000 Vl

Cat

$10,000

15.20 17.20

Avg

-Avg -Avg

3 Mo 6 Mo 1 Yr

-0.32 -0.60 -0.59 -1.82 4.54 -2.88 15.20 -2.11 17.20 -0.14

-0.43 0.02 0.41 -2.14 0.70

56 9,968 65 9,941 35 10,454 62 15,288

+Avg

10 Yr Incept

. . . .

6.49

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Other Measures

Standard Index

Best Fit Index S&P 500 Mstar Large Cap TR

9 22,113 . . . . . . . . . .

Pfizer Inc

Verizon Communications I

Alpha

-1.1 0.96

-1.0 0.97

Chevron Corp

Energy

10.5 -12.10 2.27

Beta

AT&T Inc

Comm Svs 32.0 8.54 2.11 Hlth care 14.8 1.83 2.03

R-Squared

89

90

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 14.02 51 1.03 43 16.28 7 0.79 42 . . . . Potential Capital Gain Exposure: 18% of assets Morningstar’s Take by Michael Rawson 06-11-15 Vanguard High Dividend Yield’s low cost, admirable performance, and respected parent earn it a Morningstar Analyst Rating of Silver. It offers a yield competitive with other dividend-focused funds without concentrating on riskier stocks. It spreads its assets over more than 400 U.S. stocks that have been screened for their yields and then market-cap weighted. The passive, market-cap-weighted approach helps reduce turnover and eliminates the temptation to reach for yield among small- and mid-cap stocks that offer better yields but also greater risk. Its diversification mitigates risk. Dividend-payers are often considered defensive, and the Ken French data library shows they have outperformed non-dividend-payers since 1926. But they aren’t risk-free. The highest-yielding stocks can be distressed, headed for a dividend cut, or moribund. This fund’s index tilts toward global conglomerates with big competitive advantages, such as Exxon Mobil XOM, Johnson & Johnson JNJ, and General Electric GE, while minimizing higher-yielding but potentially riskier

Merck & Co Inc Coca-Cola Co

Standard Deviation

8.66

Cnsmr Def 24.8 -5.52 2.00 International Business M Technology 10.4 2.88 1.95 Intel Corp Technology 12.9 -14.87 1.90 Cisco Systems Inc Technology 15.9 0.16 1.76 PepsiCo Inc Cnsmr Def 21.7 0.15 1.67 Philip Morris Internatio Cnsmr Def 16.9 0.88 1.51 Wal-Mart Stores Inc Cnsmr Def 14.5 -16.27 1.41 AbbVie Inc Hlth care 59.5 4.20 1.34

Mean

15.20

Sharpe Ratio

1.68

names such as Freeport-McMoRan FCX and Universal UVV. The approach has paid off. From its 2006 inception through April 2015, it has returned 6.9%, beating the 5.1% return of the average large-value fund and slightly trailing the 7.1% return of the S&P 500, while having a lower standard deviation. That ranks in the top quintile of the large-value Morningstar Category. Dividend-paying stocks have been popular as income investors seek better yields than those offered by fixed-income markets. This fund has brought in $10 billion in net flows during the past five years. However, dividend-paying stocks could suffer if interest rates begin to rise or if there is a sharp pullback in the market. The fund lagged the S&P 500 as interest rates rose in the summer of 2013 and in the bear market during the financial crisis. As an index-tracker, this fund will maintain full market exposure at all times; management does not have the option to shift to cash or more-defensive stocks. Patient investors should be rewarded.

Current Investment Style

Sector Weightings

% of Stocks

Rel S&P 500 High

3 Year Low

Market Cap % Giant 58.9 Large 26.8 Mid 10.6 Small 3.0 Micro 0.7 Avg $mil: 75,474

Value Blnd Growth

Large Mid Small

Cyclical 23.13 BasicMat 3.21 CnsmrCyc 5.67 FinanSvs 14.25 Real Est 0.00 Sensitive 42.86 CommSrvs 5.46 Energy 11.78 Industrl 12.01 Technlgy 13.61 Defensive34.01 CnsmrDef14.50 Hlthcare 11.86 Utilities 7.65

. . . . . .

h r t y u j i o p a k s d f

4 3 8 5

. 14 12

0 0

6 5

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

. 13 10 . 15 12 . 19 9

17.34 2.45 1.60 9.73 3.42 7.60 2.83 1.05 -2.13 2.37

1.32 1.44 1.38 1.61 1.24 0.87 0.55 0.70 NMF 0.68

.

. 16 14 . 12 11

% Rel Category

8 7

.

Composition - Net

Cash 0.1 Stocks 99.9 Bonds 0.0 Other 0.0 Foreign 0.9

Address:

Vanguard Whitehall Funds Valley Forge, PA 19482 800-662-7447 www.vanguard.com

Minimum Purchase: Min Auto Inv Plan:

$3000 $3000

Add: . Add: .

IRA: $3000

Profitability

% Rel Category

Sales Fees:

No-load 0.16% 3Yr:$58 Quarterly

Return on Equity Return on Assets Net Margin

21.48 6.61 12.97

1.32 1.10 1.09

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

(% of Stock)

11-16-06

Actual Fees:

Mgt:0.16% Dist: .

Vanguard Group, Inc.

Expense Projections: Income Distribution:

5Yr:$101 10Yr:$230

None

Vanguard NTF

Mutual Funds ß ®

© 2015Morningstar, Inc.All rights reserved. The informationherein is not representedorwarranted to be accurate, correct, complete or timely.Pastperformance is no guarantee of future results.Access updated reportsat To order reprints, call 312-696-6100. mfb.morningstar.com.

EQ