(PUB) Morningstar FundInvestor

January 2 014

Morningstar FundInvestor

7

Data through December 31, 2013 Vanguard European Stock Index Adm

Ticker

Status Yield Total Assets

Mstar Category

VEUSX Open

2.8% $19,604 mil

Europe Stock

Morningstar Analyst Rating 10-31-13

Investment Style Equity Stock %

Historical Profile Return Risk Rating Average Average Neutral

97% 97% 98% 98% 95% 97% 99% 99% 96%

Œ

Manager Change Partial Manager Change

14.0 18.0 22.8

Morningstar Pillars Process Performance

Growth of $10,000

Positive Neutral Positive Positive Positive

¶ ∞ ∞ ∞ ∞ ∞

Investment Values of Fund Investment Values of MSCI WexUS

10.0

People Parent Price

7.0

Performance Quartile (within Category) History

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 12-13

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 ¨

47.51

38.04

51.64 38.84 17.93 17.96

61.01 20.96

65.05

84.64 33.57 16.92 19.71

93.46

47.90

60.86 32.04 20.89 28.16

61.03

51.60

73.22 24.89 9.60 -0.34 3.39 21.50

NAV

-17.85 . -58.68 . -56.39 .

9.36

-44.67 13.93 -86.12 59.46 -80.50 60.35

-11.49 5.01 -28.32 18.72 -30.61 16.07

Total Return % +/-MSCI WexUS

-17.29 4.34 -24.36 11.54

+/-MSCI Eur

2.05

2.94

2.72

2.75 6.61 1.68 0.00 0.17 3.45 72

3.45

3.47

3.87

4.97

4.70

3.92

Income Return % Capital Return %

.

-19.90 .

35.90

18.24

30.12

-48.54 10.46

27.07

-15.41 0.31

47

37

32

41

40

23

54

82

32

60

Total Rtn % Rank Cat

Pillar Spectrum Positive ∞

.

1.04 0.00 0.23 2.41

0.98 0.00 0.23 2.84

1.12 0.00 0.18 2.76

1.41 0.00 0.18 2.93

2.24 0.00 0.12 3.45

2.94 0.00 0.12 3.92

3.62 0.00 0.16 3.91

2.38 0.00 0.14 3.10

2.86 0.00 0.14 3.58

2.39 0.00 0.12 3.89

2.03 0.00 0.12 3.16

Income $

§ Negative

¶ Neutral

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

Performance 12-31-13 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

15

5 . .

6

9

15

18

11

6

7

10

2009 2010 2011 2012 2013

-16.79 26.37 22.75 2.29 -44.67 -1.35 -15.72 20.40 4.91 32.04 6.08 2.81 -23.36 5.90 5.01 11.43 -7.32 8.69 7.79 -11.49 2.07 -0.11 13.33 8.08 20.99

329

520

726

1,474

2,419

2,851

1,402

1,751

2,826

2,311

2,644

3,645

Portfolio Analysis 11-30-13 Share change since 10-13 Total Stocks:474 Sector

Rating and Risk Time Load-Adj

Country

% Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

Nestle SA

Cnsmr Def

Switzerland

2.70 2.39 2.25 2.11 2.07 1.70 1.50 1.46 1.41 1.39 1.27 1.20 1.17 1.13 1.13 1.01 0.95 0.93 0.92 0.91

1 Yr 3 Yr 5 Yr

24.89 10.18 13.15

Trailing

Total +/- MSCI

+/- MSCI

%Rank Growth of

HSBC Holdings PLC Roche Holding AG

Finan Svs U.K.

Return% WexUS 8.08 3.31 22.48 7.14 24.89 9.60 10.18 5.04 13.15 0.34

Eur

Cat

$10,000

Avg Avg Avg

Avg

Hlth care Switzerland Hlth care Switzerland

3 Mo 6 Mo 1 Yr

0.20 -0.09 -0.34 0.29 -0.21 0.24

61 10,808 30 12,248 61 12,489 62 13,375 57 18,547

+Avg

Novartis AG

10 Yr Incept

7.52 6.92

Avg

Vodafone Group PLC

Comm Svs U.K.

BP PLC

Energy

U.K.

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

GlaxoSmithKline PLC Royal Dutch Shell PLC Cl

Hlth care U.K.

Other Measures

Standard Index MSCI WexUS

Best Fit Index

Energy Energy

U.K.

MSCI Eur

7.52 -0.05 57 20,649 . . . . . Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

Total SA Sanofi Bayer AG

France

Alpha

4.5

0.4

Hlth care France Hlth care Germany

Beta

1.09

0.99

R-Squared

94

99

Siemens AG

Utilities Cnsmr Def Basic Mat

Germany

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

9.30

51 60 54

0.80 0.81 0.74

72 83 26

British American Tobacco

U.K.

Standard Deviation

18.52 10.18

12.23

Basf SE

Germany

Mean

Banco Santander SA Royal Dutch Shell PLC Cl

Finan Svs Spain

6.72

Sharpe Ratio

0.61

Energy

U.K.

Potential Capital Gain Exposure: -12% of assets

Daimler AG

Cnsmr Cyc Germany

Morningstar’s Take by Alex Bryan 10-31-13 Although Europe is fraught with risk, Vanguard European Stock Index is a compelling vehicle for investors looking to take advantage of attractive valuations, profit from a potential European recovery, or improve diversification. The fund invests in large- and mid-cap stocks across 16 developed countries in Europe, representing more than 86% of the investable market. However, British and Swiss stocks account for nearly half the portfolio. This is the cheapest broad European-stock fund with one of the most comprehensive portfolios available. Consequently, it is one of the best options for passive exposure to European equities and is a suitable core holding. Its largest holdings are quality multinational names, such as Novartis NVS, Vodafone VOD, Total SA TOT, and Nestle NSRGY. European stocks can offer meaningful diversification benefits to U.S. investors. The FTSE Developed Europe and Russell 1000 Indexes were 0.90 correlated over the past decade. The fund offers greater exposure to basic-materials stocks than most broad U.S. funds,

Anheuser-Busch Inbev SA

Cnsmr Def Cnsmr Def

Belgium

Diageo PLC Allianz SE

U.K.

which tend to under-represent them. It also owns more financial services stocks. While European banks still face significant risks, these stocks may enhance the fund’s diversification benefits. Like most international funds, the fund does not hedge its currency exposure. Consequently, it may help hedge against a decline in the value of the U.S. dollar relative to the euro and pound sterling. This fund is also available as an exchange-traded fund, Vanguard European ETF VGK. This hybrid structure allows the fund’s managers to transfer low-cost-basis shares out of the fund in a tax-free transaction with the ETF’s market makers, known as authorized participants. Low turnover further enhances the fund’s tax efficiency. It has not distributed any capital gains over the past decade. In March 2013, Vanguard moved the fund from the MSCI Europe Index to the FTSE Developed Europe Index, citing potential cost savings. These indexes offer nearly identical exposure. The fund’s low fees and full index replication has kept tracking error low.

Finan Svs Germany

Current Investment Style

Sector Weightings

% of Stocks

Rel MSCI

3 Year Low

WexUS High

Market Cap % Giant 61.1 Large 28.6 Mid 10.2 Small 0.0 Micro 0.0 Avg $mil: 48,716

Value Blnd Growth

Cyclical 40.06 BasicMat 9.00 CnsmrCyc 9.30 FinanSvs 20.93 Real Est 0.83 Sensitive 28.98 CommSrvs 6.20 Energy 9.16 Technlgy 4.05 Defensive30.96 CnsmrDef13.52 Hlthcare 12.55 Utilities 4.89 Industrl 9.57

.

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

Large Mid Small

. 10 8 . 10 7 . 21 17

1 1

. . .

7 5

. 13 9 . 12 10

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

Rel Category

8.81 -2.76 -0.07 -1.12 -14.14 15.09 1.61 0.97 5.06 2.90

0.76 NMF NMF NMF NMF 1.10 0.93 0.97 0.90 0.97

4 3

. .

. 15 12 . 13 9

5 4

.

% Rel Category

Regional Exposure UK/W. Europe100 Japan 0 Asia X Japan 0

% Stock

N. America 0 Latn America 0 Other 0

Address:

PO Box 2600 Valley Forge, PA 19482 800-662-7447 www.vanguard.com

Minimum Purchase: Min Auto Inv Plan:

$10000

Add: $100 IRA: $0

$0

Add: .

Sales Fees:

No-load 0.09% 3Yr:$39 Quarterly

Composition - Net

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

Management Fee:

Country Exposure

% Stock

Cash

0.4

Bonds Other

0.0 3.3

08-13-01

Actual Fees:

Mgt:0.09% Dist: .

U.K.

31

Germany

14

Vanguard Group, Inc.

Expense Projections: Income Distribution:

5Yr:$68 10Yr:$154

Stocks

96.3

None

France 15 Switzerland 14

Spain

5

Foreign

99.9

(% of Stock)

Vanguard NTF

Mutual Funds ß ®

© 2013Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted to be accurate, correct, complete or timely. Pastperformance is no guarantee of future results.Accessupdated reportsat To order reprints, call 312-696-6100. mfb.morningstar.com.

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